Policy Reform in Energy Sector Created Better Environment for Private Sector, Says Water & Energy State Minister

Addis Ababa, August 14, 2025 (ENA) -- Ethiopia has created a better business environment for the private sector in the energy sector and other areas in general by opening up its economy and revising investment policies, Water and Energy State Minister Sultan Welle said.

Addressing a panel discussion organized by the Ministry of Water and Energy and International Solar Alliance on Ethiopia’s solar energy today, the state minster said Ethiopia has abundant renewable energy.

 “I can definitely say without any doubt that all renewable energies available in the world are also available in Ethiopia, even though the extent and the locations and the generation might matter.”

So far, in comparison with the potential the nation has, the power it generated is actually quite limited, he pointed out.

Noting that the country has been implementing a national electrification program, he said the main objective of this program is actually to fully electrify Ethiopia using all alternative sources.

According to him, the plan is to electrify 65 percent of the people from the main grid, and the remaining from the off-grid technologies.

“Just a couple of years ago, we used solar mainly for cooking and lighting alone, but now we go beyond that.”

 

Solarization doesn't only stand for generating electricity for lighting and cooking, but also for productive use too, he noted, urging domestic and international private sectors to come and engage with Ethiopia.

For the state minister, transforming the agriculture sector, which plays a significant role in supporting the nation’s economy, is essential.

He stressed the need to use the abundant ground and surface resources the country has, since shortage of power is the limiting factor to transform the nation’s agricultural resources.

 

“There is a better environment for the private sector to carry out every kind of development activity in Ethiopia. We opened up our economy mainly to boost our production and to realize the prosperity of the country.”

The state minister pointed out that Ethiopia has already revised its investment policies, not only the agriculture or energy sector, but also in every sector which has created a better environment for the private sector.

On his part, International Solar Alliance Director-General Ashish Khanna said Ethiopia has huge renewable energy potential, which is still underutilized.

 

He underscored that Ethiopia is already undertaking big economic reforms, noting that the timing is right for the sector is to move ahead at a faster pace.

Khanna reaffirmed the alliance’s commitment to provide support based on the priorities of the Ethiopian government, including advancing Ethiopia's solar transformation.