The global solar energy landscape witnessed a remarkable surge in 2024, with installed capacity reaching an impressive 2,205 gigawatts (GW) after a 33% increase, driven by 548 GW added within a single year .
This rapid expansion underscores the growing momentum towards renewable energy worldwide. However, a closer examination reveals a significant disparity in how this growth and its associated funding are distributed, particularly impacting Least Developed Countries (LDCs) and the African continent.
Despite Africa’s vast untapped solar potential, the continent received a mere 2% of the USD 521 billion invested globally in solar in 2024, with LDCs and Small Island Developing States (SIDS) collectively receiving less than 1% .
This stark investment gap highlights deep structural barriers, as nearly 80% of the funding flowed to developed economies, India, and China. While Asia-Pacific accounted for 71% of new solar capacity in 2024, the Middle East and Africa together contributed only about 1% .
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This imbalance is not attributable to a lack of natural resources but rather to critical challenges in financing conditions, grid readiness, and institutional capacity. Many high-irradiation African nations face borrowing costs several times higher than those in OECD markets, which inflates tariffs and impedes project development .
In contrast, India’s renewable sector financing reached a record USD 21 billion in 2024, demonstrating robust investor confidence .
Nevertheless, Africa is beginning to carve its own path in solar adoption. The continent recorded its fastest year of solar growth in 2025, with installations rising by 54% year-on-year . South Africa emerged as a key player, adding 1.6 GW in 2025, contributing significantly to the continent’s expanding solar footprint .
This nascent boom, while promising, underscores the urgent need for equitable investment and tailored financial mechanisms to unlock Africa’s full solar potential and ensure a truly inclusive energy transition.
By Thuita Gatero, Managing Editor, Africa Digest News. He specializes in conversations around data centers, AI, cloud infrastructure, and energy.
