By Abdullahi Lukman
Investment in Africa’s clean energy sector reached a record $15 billion in 2023, marking a historic milestone for the continent’s energy transition.
According to the Africa Power Transition Factbook 2024 published by BloombergNEF, the figure represents more than double the investment recorded in 2022, reflecting rising global interest in Africa’s renewable energy potential.
Despite the strong growth, experts say the pace of investment must accelerate significantly for Africa to meet its development and climate targets.
The surge in funding was largely driven by several major renewable energy projects across the continent.
Countries such as Egypt, Morocco, Kenya, and South Africa attracted substantial investments in utility-scale solar, wind and geothermal power projects.
In South Africa, there has also been rapid growth in rooftop solar installations, as businesses and households increasingly adopt solar systems to reduce reliance on an unstable electricity grid and frequent power outages.
These developments suggest that renewable energy investments are becoming more attractive to both domestic and international investors in key African markets.
However, Africa still receives only a small share of global clean energy financing.
The $15 billion investment accounted for about 2.3% of global spending on energy transition projects, a relatively low figure considering the continent’s vast renewable resources.
Africa possesses nearly 60% of the world’s best solar resources, yet much of this potential remains underdeveloped.
To address this gap, the African Union has set a target to develop 300 gigawatts of renewable energy capacity by 2030.
Achieving that goal will require a sharp increase in renewable energy deployment.
Current installations average around 8 gigawatts per year, but this would need to rise to more than 32 gigawatts annually to meet the target.
Policy and infrastructure challenges continue to slow progress. Analysts note that over 40% of African countries still lack formal renewable energy auction programs or competitive tender systems, which are critical mechanisms for attracting long-term investment.
Additionally, the high cost of capital and aging electricity grid infrastructure remain major barriers to project development.
In many countries, outdated transmission systems cause significant power losses and limit the integration of new renewable energy projects.
Energy experts say stronger government policies and increased international financial support will be key to unlocking Africa’s renewable energy potential.
Expanding clean energy capacity could play a crucial role in improving electricity access for nearly 600 million people across Africa who currently lack reliable power.
At the same time, greater investment in renewable energy would help reduce emissions, strengthen energy security and support sustainable economic growth across the continent.