Africa’s Energy Future: Powered by African Collaboration and African Capital
Africa doesn’t face energy scarcity—it faces energy access and coordination challenges. With over 10 terawatts of solar potential, 350 GW of hydro, 110 GW of wind, and 15 GW of geothermal, the continent is rich in clean energy. Yet more than 600 million Africans still live without reliable electricity, and renewables contribute just 18% of generation. The real gap lies in fragmented national systems and underinvestment.
That is changing—through regional collaboration and the mobilisation of African capital.
The African Continental Free Trade Area (AfCFTA) is breaking barriers by eliminating tariffs, aligning regulations, and making electricity tradeable across borders. Imagine Malian solar powering Senegal or Ethiopian hydro lighting up Kenya. AfCFTA is enabling a unified African energy market.
In West Africa, the West African Power Pool (WAPP) connects 14 countries, driving major projects like CLSG and OMVG, expanding access and cutting outages. SAPP in Southern Africa leads with a functional day-ahead power market, while East Africa’s EAPP is preparing for cross-border trade, leveraging vast hydro and geothermal reserves.
A continent-wide shift toward cross-border renewable energy trading is now underway. Over 32,700 MW of clean energy capacity is under construction, including 15,600 MW in hydro, 8,100 MW in solar, and 5,000 MW in wind. Kenya now generates 940 MW from geothermal, while Ethiopia is scaling its 6,450 MW Renaissance Dam, having tapped just 5% of its hydro potential.
But infrastructure alone won’t power Africa. The continent holds over $4 trillion in domestic assets, including $1.1 trillion in pensions, insurance, sovereign wealth, and development bank capital. Yet in 2022, green energy investment stood at just $5 billion—a fraction of the $25 billion needed annually through 2030.
To close the gap, African capital must flow into African infrastructure. Institutions like AfDB, AFC, and Africa50 are already moving. Africa50 alone has invested $6.6 billion in six years. What’s needed is scale, speed, and trust.
The challenges—grid gaps, policy fragmentation, utility debt—are real but solvable. What’s emerging is a new kind of energy diplomacy, grounded in shared markets, mutual benefit, and African solutions.
This is not just electrification—it’s continental transformation. And it’s already underway.
Africa will power Africa. Together.
Written by Fredrick Owusu (CGIA)
