Sub-Saharan Africa will requiresubstantial investments in the power sector on the order of4 percent of the region's gross domestic product (GDP)annually before 2015 if it is to meet the demands ofeconomic development, keep pace with population growth, andexpand electrification beyond the 2005 regional average ofjust 34 percent. Developing a regional power-trading marketthat exploits the vast hydropower potential of thesubcontinent may be the best way to bring those costs downwhile also protecting against increases in oil prices andcurbing carbon emissions. Expanding electrification is adaunting challenge, but the costs associated with extendingthe transmission network are minor in comparison with theinvestments in generation needed to accompany the demand ofAfrica's growing economies.