Africa must add at least 16 gigawatts (GW) of new grid-connected generation capacity each year until 2050 and invest between $3.2 billion and $4.3 billion annually in transmission infrastructure to meet even its most basic growth targets.
This disclosure was made in the Africa Finance Corporation’s (AFC) newly-released report “State of Africa’s Infrastructure Report 2025”.
According to the AFC, “To meet such transmission needs, Africa will require at least $3.2–4.3 billion annually through 2040.”
The organisation stated further, “To meet its most basic energy needs, Africa should aim for at least 16 GW annually until 2050. Considering population growth, such capacity addition would bring average generation capacity to 0.300 MW per thousand capita, at par with levels seen in India and Indonesia today.”
The Corporation also noted that this development, despite its grim picture, provides “vast investment opportunities across solar PV, gas-to-power, hydropower, battery storage, and grid modernization” for investors.
The AFC stated that with the right investments and reforms, Africa can build the world’s most dynamic, integrated, and future-ready energy system, powering growth for the next generation.
Africa urged to emulate Latin America’s model for attracting private sector investment
According to the AFC, the lessons from Latin America may offer a way forward. The organisation stated that since the 1990s, countries such as Brazil have opened transmission to the private sector through competitive auctions and independent power transmission (IPT) models.
“Brazil’s grid has grown from 105,000 km in 2012 to 184,000 km in 2023, with 86,000 km of new lines auctioned over the past 16 years. In 2024 alone, Brazil’s first transmission tender attracted $3.65 billion—equal to Africa’s annual transmission investment need,” AFC noted.
According to the AFC, “Brazil’s experience demonstrates that creating a viable investment pipeline— anchored in regulatory reform, unbundled utilities, and long-term planning—is essential to crowd in private capital at scale”.
What this means for Nigeria
For Nigeria to meet its own energy demands and support sustainable economic growth, it must align with the continental target of adding at least 16 GW of grid-connected generation capacity annually until 2050.
As Africa’s largest economy, Nigeria will be central to achieving this continental milestone.
Currently grappling with persistent power shortages, unreliable grid infrastructure, and a heavy reliance on diesel generators, Nigeria must significantly ramp up both its generation and transmission capacity.
In November 2024, the Federal Government said Nigeria needs $10 billion in private investment in the power sector over the next five to 10 years to achieve a 24-hour power supply.
More recently, in April 2025, in April, Minister of Power, Chief Adebayo Adelabu, disclosed that approximately 150 million Nigerians now have access to adequate electricity, while 80 million still lack reliable power.
Adelabu stated that the progress stems from Nigeria’s participation in the “Mission 300” initiative—an ambitious joint effort by the World Bank and the African Development Bank (AfDB) aimed at providing electricity access to 300 million Africans by 2030.
