Ethiopia’s $507 million Aysha Wind Project advances with IFC-proposed financing

Ethiopia is advancing its renewable energy expansion as the World Bank Group, through its private sector arm, the International Finance Corporation (IFC), moves forward with a proposed $65 million investment in the $507 million Aysha Wind project, a major 300.2-megawatt development in the country’s Somali Region.

The financing proposal forms part of a broader $378 million debt structure expected to be co-arranged by the African Development Bank and additional lenders, according to project disclosures.

Renewable energy expansion in Ethiopia

The Aysha Wind project is being developed by one of the fastest-growing renewable energy companies, AMEA Power, through its Ethiopian special purpose vehicle, AMEA Power Aysha Wind One PLC, and represents one of the largest private wind investments in Ethiopia’s energy sector. The project will be built in the Sitti Zone under a 25-year Power Purchase Agreement with Ethiopian Electric Power (EEP), supported by an implementation agreement with the Ministry of Finance. 

Once completed, the wind farm is expected to significantly boost Ethiopia’s electricity generation capacity while strengthening grid reliability across underserved regions. Ethiopia continues to prioritize renewable energy as part of its long-term development strategy, particularly wind and hydropower, to expand rural electrification and reduce reliance on imported energy sources. The Aysha Wind project is expected to play a strategic role in improving energy access in the Somali Region while supporting broader national grid stability.

Environmental and social considerations

The project has been classified as a Category A investment under IFC standards due to its scale and potential environmental and social impacts.

Key risks include land access challenges affecting pastoral communities, construction-phase habitat disruption, workforce accommodation pressures, and traffic impacts along the Djibouti–Aysha corridor. Operational risks include potential impacts on bird and bat populations, as well as noise and shadow flicker effects near turbines.

Financing structure and development role

IFC is expected to contribute up to $65 million in senior debt, while the remaining financing will be mobilized through the African Development Bank and parallel lenders.

The project also benefits from IFC advisory support, including environmental, social, and gender assessments aimed at improving inclusive development outcomes.

Strategic ownership structure

AMEA Power develops the project through its subsidiary, with ownership ultimately tied to UAE-based Al Nowais Investments, with Hussain Al Nowais as the Chairman of AMEA Power and a minority stake held by SoftBank Group Corporation. 

Headquartered in Dubai, AMEA Power is a developer, investor, owner and operator of renewable energy projects. As one of the fastest-growing renewable energy companies in the region, AMEA Power has assembled a world-class team of industry experts to deliver projects across Africa, the Middle East, and emerging Asia. With projects in 20 countries, the company is rapidly expanding its investments in wind, solar, energy storage, and green hydrogen, demonstrating its long-term commitment to the global energy transition.

IFC is expected to provide up to $65 million in senior debt from its own account, while the remaining debt, up to $313 million, will be arranged by the African Development Bank and other co-lenders. The project disclosure was made on June 8, 2026, with a projected board decision date of Aug. 31, 2026, though final approval remains subject to IFC’s investment committee and board review.