Should Africa Go Nuclear?

Hafez Ghanem

No 2625, Policy briefs on Economic Trends and Policies from Policy Center for the New South

Abstract: Africa is facing a massive electricity deficit that is impacting its economic and social development, and its ability to catch up with the rest of the world. It is imperative that the continent increase its electricity production to connect the 600 million people who are currently without access and to improve the quality of service for the millions who are suffering from frequent blackouts and load-shedding. Economic development in the 21st century will crucially depend on the digital economy and on artificial intelligence (AI), and both are big consumers of electricity. The last decade has seen major advances in nuclear technology and the development of small modular reactors (SMRs). Recently the World Bank has changed its policy to allow it to finance nuclear energy projects in developing countries. This policy brief examines whether those developments are an opportunity for Africa. Are SMRs the solution to Africa’s electricity problem? The policy brief is divided into six sections. After this introduction, section 2 describes Africa’s electricity deficit and its impact on the continent’s development. Section 3 explains why Africa needs more mini grids. Section 4 describes the evolution of SMR technology. Section 5 compares the costs and benefits of nuclear energy using SMRs to the cost and benefit of renewables and of natural gas. Section 6 concludes by trying to answer the question of whether Africa should go full speed toward adopting SMR technology.

Date: 2026-07
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