The European Union has highlighted the gap between Africa’s renewable energy potential and the level of investment it receives, saying the continent holds 60% of the world’s best solar resources, yet attracts only 2% of global energy investment.
Despite its solar wealth, Africa faces high capital costs, limited investment, geographic barriers, and supply chain constraints that slow progress in renewable energy deployment.
“Africa holds 60% of the world’s best solar resources, offering a significant opportunity for renewable energy. Despite this, the continent attracts only 2% of global energy investment, and faces challenges like high capital costs, limited investment, geographic barriers, and supply chain constraints,”the EU stated
Currently, 600 million people across the continent lack access to electricity. With Africa’s population expected to double by 2050, providing affordable and sustainable energy is crucial for both economic growth and global climate goals.
Boosting Africa’s energy
A campaign led by European Commission President Ursula von der Leyen and South African President Cyril Ramaphosa has mobilised €15.5 billion to support Africa’s shift to renewable energy.
The initiative targets expanding electricity access, promoting industrial decarbonisation, and driving economic growth across the continent.
President von der Leyen said the investment would boost Africa’s clean-energy transition and provide electricity to families, businesses, and communities
“Today, the world has stepped up for Africa. With €15.5 billion, we are turbocharging Africa’s clean-energy transition. Millions more people could gain access to electricity, real, life-changing power for families, for businesses, for entire communities. This investment is a surge of opportunity: thriving markets, new jobs, and reliable, clean energy that meets the needs of partners across the globe. President Ramaphosa and I both look forward to a clean-energy future for the continent. A future led by Africa, with strong support from its friend and partner, Europe,” President von der Leyen said
The bulk of the funding comes from the European Union, including pledges coordinated through Team Europe, with contributions from Germany, France, Italy, Denmark, the Netherlands, and Spain. Additional support comes from European financial institutions and development banks. African partners, including the African Development Bank, have committed to directing significant funds toward renewable energy projects.
Impact on households
The campaign is expected to deliver 26.8 GW of renewable energy and provide electricity access to 17.5 million households that currently lack reliable power.
Team Europe partners have also indicated plans to increase investments in renewable energy by 2030, adding an estimated €4 billion to the total commitment.
European Union, through the Global Gateway initiative, is working to address the obstacles Africa faces by funding renewable energy generation, enhancing transmission infrastructure, and promoting cross-border electricity trade. The partnership is designed as a long-term collaboration to strengthen Africa’s clean energy capacity and reduce dependence on fossil fuels.
