AEBF 2025: Enhancing the Bankability of AfSEM-CMP Projects Pipeline

The implementation of the Continental Power Systems Masterplan (CMP) and African Single Electricity Market (AfSEM) are well underway, aiming to create an integrated continent-wide competitive electricity market. To speed up work on the ground, priority projects identified under the CMP will need speedier preparation and timely financing.

This is why AUDA NEPAD, in collaboration with Africa-EU Energy Partnership (AEEP), hosted a session on 25 November 2025 at the AU-EU Business Forum (AEBF) in Luanda, Angola to discuss “Enhancing the Bankability of AfSEM-CMP Projects Pipeline” with a panel of experts from African and Europe.

Mr Gianlucca Azzoni, Head of Policy & Cooperation, EU Delegation to the African Union, opened the session by emphasising that the EU’s support for the African Union (AU), AUDA NEPAD, and the African Energy Commission (AFREC) is unwavering under the EU Global Gateway strategy and aims to support the implementation the ambitious plans of AfSEM, CMP and the African Energy Efficiency Strategy (AfEES).

While giving an overview of the status of AfSEM and CMP Mr Tichakunda Simbini, Head of Energy, AUDA-NEPAD, focused on the need to shorten the project preparation time. “We live in an area of innovation”, said Mr Simbini, and noted that AUDA NEPAD is working with partners to explore how AI based tools can help prepare project feasibility studies and fisches within a short space of time.

The panel discussion, moderated by Towela Nyirenda-Jere, Head of Secretariat, AEEP, underlined the importance of proper data, investments in the grid, as well as visibility and predictability of the political and regulatory landscape to attract financing from Europe.

Mr Roberto Ridolfi, Senior Adviser, Africa Climate & Energy Nexus (AfCEN) explained that AfCEN is working on leveraging digital tools, including AI, to play a critical role in project preparation. As an example, he mentioned that CMP project preparations that can take up to three years now can be reduced to half this time with the right data and tools in place.

Project preparation times can also be shortened by for example utilising portfolio-based approaches, said Ms Marie-Hélène Loison, Regional Director for Southern Africa, AFD. She furthermore emphasised that there is not a lack of interest or financing from Europe. “In our experience, what keeps European investors away is visibility and predictability”, said Loison, referring to both the regulatory and political environment in the country. 

Mr Tonderayi Gumunyu, Energy and Planning Expert, EU – Continental Energy Programme in Africa (CEPA), noted that in many African counties there are already enough projects on the ground and the issue is rather lack of investment in the national grid to be able to absorb the added capacity.

To enhance the bankability of CMP projects Mr Leon Taljaard, Leader Scaling Ventures in Africa & Europe, Invest Investment, concluded that we are on the right track in terms of harmonisation by for example clustering project portfolios that can be presented to the finance community. Finally, he underlined that as long as risk is perceived on a sovereign level, financing is calibrated accordingly, Taljaard suggested that “by coupling project finance life cycles with project development lifecycles we can strengthen the perception from the ground up. Let’s reverse engineer and see what our real risks are, it is all about allocating the risks appropriately”.