Africa will receive only 2% of the $2 trillion global clean energy investment in 2024 according to a new report by the International Energy Association (IEA).
In 2024, clean energy investment worldwide is expected to reach $2 trillion with Africa receiving just around $40 billion. Energy investments in the continent are expected to reach $110 billion with about $70 billion going into fossil fuels.
The figure is paltry in light of the energy needs of the continent where over 600 million people have no access to electricity and around 1 billion people without access to clean cooking fuels.
The share of GDP to energy investment in the continent is 1.2% compared to the global average of 1.8% while.
The report explained that the continent will need a yearly investment of $200 billion by 2030 to achieve its energy and climate-related goals. It noted that financing needs fall far short of the required $25 billion annually.
It stated, “Our tracking of energy spending suggests that around USD 110 billion is set to be invested in energy across Africa in 2024, of which nearly USD 70 billion to fossil fuel supply and power, with the remainder going to a range of clean energy technologies. Spending trends vary widely across Africa, but neither the total amount nor the proportion spent on clean energy is enough to put the continent on track to reach its sustainable development goals.”
Global energy investments
The IEA’s annual World Energy Investment report projects that total energy investment will surpass $3 trillion for the first time in 2024.
Of this amount, $2 trillion is earmarked for clean technologies, including renewables, electric vehicles, nuclear power, grids, storage, low-emissions fuels, efficiency improvements, and heat pumps. The remaining funds will be directed towards gas, oil, and coal.
China is projected to lead clean energy investment in 2024 with an estimated $675 billion, followed by Europe at $370 billion and the United States at $315 billion. Solar photovoltaic (PV) will receive the most investment among electricity generation technologies, growing to $500 billion in 2024 due to declining solar module prices.
Global upstream oil and gas investment is expected to rise by 7% in 2024 to $570 billion, continuing a similar increase seen in 2023, driven primarily by national oil companies in the Middle East and Asia, according to the report.
Backstory
During the World Bank/IMF spring meeting in April, the World Bank and the African Development Bank (AfDB) partnered to provide electricity for 300 million Africans by 2030 in a plan estimated to cost around $30 billion.
Around 83% of the world’s population without access to electricity currently resides in Africa. The World Bank and the AfDB aim to halve this number by 2030. The World Bank plans to provide electricity access to 250 million people, while the AfDB will serve 50 million, completing the target.
