Clean energy growth is accelerating across Africa, with investment in renewables, especially solar PV, more than doubling from USD 17 billion in 2019 to nearly USD 40 billion by 2024.
Renewables are now outpacing fossil fuel additions continentwide. In 2023, Africa added approximately 7.9 gigawatts of renewable capacity, more than triple the net fossil fuel capacity, whose pipeline has slowed by around 70 percent over the past five years.
Solar costs are collapsing and adoption is spreading, with growth projected at 42 percent in 2025, reaching new markets such as Ghana, Burkina Faso, Nigeria, Zambia, and Angola.
Significant Details
Fossil fuels still dominate. In 2025, fossil sources are expected to represent about 69 percent of Africa’s installed power capacity, with renewables only reaching about 45 percent by 2035.
Access gaps remain stark. Over 600 million people across Africa still lack electricity, and nearly one billion rely on polluting fuels for cooking.
Finance is the biggest bottleneck. Although private investment has surged, public and development finance, especially from Chinese development banks, fell by a third to 20 billion dollars in 2024. Capital costs remain three to seven times higher than in developed markets, limiting renewable expansion.
The African Union aims for 300 gigawatts of renewable capacity by 2030. However, current forecasts fall 35 to 43 percent short of that goal, requiring deployment rates to jump from approximately 8 gigawatts today to about 32.5 gigawatts per year.
Background and Broader Context
Growth and Leading Countries
Africa’s renewable energy capacity has doubled over the past decade, from about 32 gigawatts in 2013 to nearly 69 gigawatts in 2024. Countries leading the charge include South Africa, Kenya, Ethiopia, Morocco, Angola, and Senegal.
South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) has led to over 6 gigawatts being deployed. Morocco hosts the Noor Solar Complex, one of the largest in the world. Kenya now sources over 90 percent of its electricity from clean sources including geothermal, wind, and solar.
Off-grid and Decentralized Solutions
Solar mini-grids and home systems are making a massive difference. In Kenya and Nigeria, households connected to decentralized solar saw median incomes quadruple. Women gained more economic opportunities, while use of polluting kerosene dropped drastically.
Companies like D.light are scaling rapidly. Its pay-as-you-go solar systems now serve millions of homes across East Africa and have helped avoid millions of tonnes of CO2 emissions.
Economic and Social Dividends
Power Shift Africa estimates that transitioning to 100 percent renewable energy by 2050 could save Africa between 3 and 5 trillion US dollars. This shift could also create millions of jobs. Current renewable energy jobs total around 350,000 but could rise to over 5 million by 2050.
Complementary studies suggest that by 2030, the green economy could support between 1.5 and 3.3 million jobs across sectors such as energy, agriculture, and waste management.
Challenges: Is It Too Late?
Uneven Finance and Weak Policy Frameworks
Despite recent momentum, investment remains severely inadequate. Africa receives only 2 to 3 percent of global clean energy investment despite housing about 20 percent of the world’s population.
Many African nations lack robust renewable energy procurement frameworks. Fewer than 60 percent of countries on the continent have implemented auction systems or policy incentives that attract international and local investors.
Fossil Fuel Dependence and Political Economy
Fossil fuels still generate nearly two-thirds of Africa’s electricity. Countries like Nigeria, Angola, and South Africa remain heavily reliant on oil, gas, and coal exports for national revenue.
Some African leaders argue that fossil fuel exploitation is a sovereign right and a necessary path to fund future green transitions. Critics warn that this approach locks countries into stranded assets, economic risk, and greater climate vulnerability.
South Africa, for instance, is caught between ambitions to lead in clean energy and a coal-dominated domestic energy structure. Its economy remains deeply tied to the coal industry, making a swift transition politically and economically difficult.
Debt Burden and Cost of Capital
Africa’s sovereign debt burden is growing, and debt servicing could consume up to 85 percent of energy investment spending by 2025. Many countries face high interest rates, foreign exchange volatility, and limited access to long-term financing.
Accelerating Africa’s energy transition will require debt relief, new international financial instruments, and expanded Just Energy Transition Partnerships. These partnerships can help de-risk investment and unlock concessional capital.
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Africa is standing at a critical energy crossroad. Globally, solar and wind costs have declined by 41 percent and 53 percent respectively over the past decade. Renewables now account for 74 percent of all new power capacity growth worldwide.
But Africa’s share in that growth remains under 2 percent. The challenge is not a lack of sunlight or wind, but access to finance, stable policy, and infrastructure to scale.
Projects like Kenya’s upcoming 1,000 megawatt Marsabit wind farm, new solar parks in Angola and Uganda, and regional expansions in Ghana and Burkina Faso are encouraging signs. They show what’s possible with strategic partnerships and domestic leadership.
The continent holds 60 percent of the world’s best solar potential, and vast untapped wind resources. If current barriers are removed, Africa can not only meet but exceed its 2030 goals, create millions of jobs, and reduce reliance on imported fuels.
