Business is booming.

Africa pushes renewable energy amid financing gap at climate summit

By Abbas Nazil

Africa is witnessing a surge in renewable energy investments, particularly solar power, raising optimism about a potential green economy boom across the continent.

However, African leaders gathered at the Africa Climate Summit in Addis Ababa have warned that without sufficient international financing, technology transfer, and capacity-building, the momentum could stall, leaving the continent’s progress fragile and uneven.

Despite being responsible for only 4% of global greenhouse gas emissions, Africa bears the brunt of climate breakdown, with millions suffering from droughts, floods, and crop failures.

Leaders emphasized that Africa’s green transition is not just an opportunity but an urgent necessity, as nearly 600 million people still lack access to electricity while a billion rely on firewood or dirty fuels for cooking.

Recent data from Ember, a climate thinktank, shows that imports of solar panels from China rose by 60% in the 12 months to June, with 20 countries breaking records for solar imports.

While capacity increased from 9MW to 15MW, experts caution that this is still a modest start compared with Africa’s vast potential and urgent energy needs.

In fact, Belgium alone has as many solar panels as the entire African continent, underscoring the scale of the challenge.

Melaku Yirga of Mercy Corps stressed that renewable energy in Africa supports food storage, irrigation, healthcare, and livelihoods, making it essential for adaptation and resilience.

Yet, reliance on short-term aid and shrinking overseas development assistance from wealthy countries has left African nations struggling.

Former Senegalese president Macky Sall lamented that reductions in foreign aid were undermining trust, warning that Africa is paying the heaviest price for a crisis it did not cause.

The continent requires at least $70bn annually for climate adaptation, but only $15bn was provided in 2023.

Without bridging this financing gap, experts estimate Africa could lose up to one-fifth of its GDP by 2050 due to climate-related damages.

Patrick Verkooijen of the Global Center on Adaptation urged richer nations not to defund aid, warning that African leaders see cuts as betrayal and stressing that neglecting Africa would ultimately harm the global north.

Meanwhile, Africa’s vast reserves of critical minerals such as cobalt, lithium, and rare earths are attracting global demand for renewable energy technologies, but weak regulations have led to human rights abuses and environmental harm in mining regions.

African leaders insist on exploiting natural gas resources for development despite climate concerns.

With 60% of its population under 25, Africa’s demographic future represents both an opportunity and a risk.

Experts caution that without jobs, infrastructure, and climate adaptation, migration pressures and instability could spill over globally, reinforcing the urgent need for investment in Africa’s renewable energy and resilience.

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