Africa’s Energy Future: Can Renewables Power the Continent? - African Business

African Business

Tue 8th July 2025

Africa’s Energy Future: Can Renewables Power the Continent?

As global energy demand shifts towards cleaner sources, African nations are betting on renewables to leapfrog legacy infrastructure and bring power to millions. But challenges remain.

Africa sits on the cusp of an energy revolution. With over 600 million people still lacking access to electricity, the continent faces a dual challenge: accelerating development while transitioning to clean energy. Yet for many African policymakers and private investors, this is not a contradiction — it’s an opportunity.

From the windswept plains of Kenya to the sun-drenched deserts of Morocco, renewable energy projects are springing up at record pace. According to the International Renewable Energy Agency (IRENA), Africa’s renewable energy capacity has grown by over 25% in the past five years. Key players such as South Africa, Egypt, and Nigeria are now investing heavily in solar, wind, and hydro solutions.

Scooby Doo

But the path is far from smooth. Financing remains a persistent hurdle. Many projects depend on concessional loans or development finance institutions to get off the ground. Regulatory uncertainty and underdeveloped grid infrastructure further complicate large-scale integration.

Private sector players are showing increased interest. In 2024, a consortium led by Masdar and Infinity Power announced Africa’s largest solar PV plant in southern Egypt — a $1.1bn project expected to power 1.5 million homes. Similarly, Rwanda’s pioneering off-grid solar schemes are showing how mini-grids can be both scalable and profitable.

Still, energy access is uneven. Countries facing conflict or debt distress, like Sudan or Zimbabwe, risk falling further behind. Critics also warn that an overreliance on imported technology may limit Africa’s ability to build homegrown energy value chains.

Q&A with Dr. Sifa Ngom: Powering Africa Sustainably

Dr. Sifa Ngom is an energy economist advising governments and multilateral institutions on Africa’s transition to clean energy. We spoke to her about the prospects — and pitfalls — of renewables on the continent.

AB: Africa has some of the world’s highest levels of energy poverty. Why do you believe renewables are key to solving this problem?

Because we don’t have the luxury of time. Building traditional fossil-fuel grids takes decades and enormous capital. Renewables — especially decentralised solar and wind — can be deployed faster, often at lower cost, and in communities where central grids will never reach. They’re not a silver bullet, but they offer a leapfrog opportunity for many African countries.

AB: What are the biggest obstacles preventing wider adoption of renewable energy in Africa?

Financing and policy coherence. Too many projects stall because of regulatory uncertainty or weak power purchase agreements. Investors need assurance that their capital is protected. At the same time, governments need capacity to structure bankable projects. There’s also the issue of local technical skills — we still import too much of the value chain.

AB: Critics argue that renewables are unreliable due to intermittency. How do you respond to that?

That’s an outdated view. Yes, solar and wind are variable, but with the right mix — hydro, storage, smart grids — reliability is absolutely achievable. Countries like Morocco and Kenya are showing this in real time. The bigger problem in Africa is not intermittency, it’s access and infrastructure.

AB: Where are you seeing the most promising innovations?

I’m very excited about off-grid and mini-grid solutions. Startups in East Africa, like those offering pay-as-you-go solar, are reaching people the big utilities never could. Also, battery costs are falling, which changes the economics of storage completely. And let’s not forget green hydrogen — it’s early days, but countries like Namibia are thinking big.

AB: What does Africa need most right now to accelerate its clean energy transition?

Three things: smarter public-private partnerships, better regional integration, and a serious focus on local manufacturing and skills development. If we don’t localise part of the supply chain, we risk becoming dependent again — this time on solar panels instead of oil.

Boxout Test 🙂

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