Charting a green-energy transformation in Africa

Rim Berahab and Karim El Aynaoui

No 2411, Research papers & Policy papers on Commodities & Energy from Policy Center for the New South

Abstract: The demand for energy in Africa is growing rapidly, driven by population growth, urbanisation and industrialisation. Nevertheless, over 600 million Africans still lack access to electricity, which represents a significant energy gap for the continent. At the same time, Africa is endowed with vast renewable-energy potential, including abundant solar and wind resources, along with emerging technologies such as green hydrogen. It is crucial to unlock this potential to meet Africa’s energy needs and to foster sustainable economic development. Africa is well-placed to capitalise on the global drive for clean energy technologies and supply chain development, as renewable energy offers the dual benefits of expanding energy access and promoting green industrialisation across the continent. Nevertheless, achieving this transformation will be complex, involving a range of challenges in relation to governance, policy, financing, costs, domestic markets and competitiveness. Effective governance is vital to guarantee a coordinated and inclusive transition. However, many African countries are confronted with political instability, regulatory uncertainties and fragmented institutions, which make the implementation of ambitious renewable energy policies more challenging. Robust governance frameworks are thus essential to secure the investment required to scale-up renewable energy projects across the continent. It is equally important to consider the policy environment, which should strike a balance between the urgent need for energy access and specific challenges faced by Africa and the sustainability and climate goals.

Date: 2025-04
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