By Kepher Otieno - Reporter
Ethiopia, 2 February 2026 - Ethiopia’s accelerating infrastructure development is increasingly being framed not just as a national achievement, but as a catalyst for wider economic transformation across the Horn of Africa.
This framing was reinforced last week when Somali President Hassan Sheikh Mohamud described Ethiopia’s development strides as vital to regional growth, during the inauguration of the Aysha-II Wind Power Project in Ethiopia’s Somali Regional State.
At the centre of the event was energy—arguably one of the most binding constraints on economic expansion in the region.
The Aysha-II wind project, with a planned total capacity of 120 megawatts, adds momentum to Ethiopia’s long-standing strategy of leveraging renewable energy to power industrialization.
The commissioning of the first 80 MW phase marks a tangible addition to the country’s electricity supply, at a time when demand from manufacturing, urbanization and cross-border trade continues to rise.
From a business and investment perspective, Ethiopia’s focus on large-scale energy projects sends a clear signal. Reliable and affordable power is foundational for productivity, value addition and competitiveness.
Wind, hydro and other green energy investments reduce dependence on imported fossil fuels, ease pressure on foreign exchange reserves and enhance long-term cost stability for businesses operating in the country.
President Mohamud’s remarks underscore a broader regional logic: Ethiopia’s infrastructure build-out has spillover effects beyond its borders. As the second-most populous country in Africa, Ethiopia functions as a natural economic anchor for the Horn.
Improved power generation, transport corridors and industrial capacity strengthen supply chains that connect neighboring economies, including Somalia, Djibouti, Kenya and Sudan.
For land-linked markets like Somalia, access to a more industrialized and energy-secure Ethiopia can translate into cheaper imports, stronger trade links and new investment opportunities.
The emphasis on “working together to accelerate regional growth” reflects a growing recognition among regional leaders that infrastructure integration is a prerequisite for economic resilience.
Cross-border power trade, logistics networks and coordinated development planning could lower transaction costs and expand markets for businesses across the Horn, a region historically fragmented by conflict and weak connectivity.
Leadership and policy continuity also featured prominently in the narrative.
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President Mohamud praised Prime Minister Abiy Ahmed’s role in pushing forward large infrastructure projects and ensuring that Ethiopia’s natural resources are translated into economic gains.
For investors, such political commitment matters. Large-scale energy and infrastructure projects require long planning horizons, regulatory clarity and sustained government backing to attract financing and private-sector participation.
Equally significant is the focus on renewable energy. Ethiopia’s growing portfolio of wind and hydropower projects aligns with global shifts toward climate-conscious investment.
As international lenders and development finance institutions increasingly prioritize green projects, Ethiopia’s renewable strategy enhances its attractiveness as a destination for concessional financing and climate-linked capital.
This not only supports domestic growth but positions the country as a regional hub for clean energy.
For Somalia, the economic implications are strategic rather than symbolic.
President Mohamud’s pledge to deepen cooperation reflects Somalia’s interest in tapping into Ethiopia’s infrastructure momentum—whether through trade, energy collaboration or shared development initiatives.
In a region where economic fragility often spills across borders, shared growth offers a stabilizing counterweight.
Ultimately, the Aysha-II wind project represents more than added megawatts to Ethiopia’s grid.
It illustrates how infrastructure investment, energy security and regional cooperation intersect to shape the Horn of Africa’s economic trajectory.
If Ethiopia’s development pace is sustained and linked to broader regional integration, the benefits could extend well beyond national borders—supporting growth, investment and stability across one of Africa’s most strategically important regions.
