The European Union has warned that Africa’s vast solar potential is not being matched by investment, noting that the continent holds 60% of the world’s best solar resources but receives just 2% of global energy financing.
The EU said Africa’s renewable energy push is being slowed by high capital costs, limited investment flows, geographic constraints and supply chain bottlenecks.
“Africa holds 60% of the world’s best solar resources, offering a significant opportunity for renewable energy. Despite this, the continent attracts only 2% of global energy investment, and faces challenges like high capital costs, limited investment, geographic barriers, and supply chain constraints,” the EU stated.
Around 600 million people on the continent still have no access to electricity. With Africa’s population projected to double by 2050, expanding affordable, sustainable energy is seen as critical for economic development and for meeting global climate targets.
A joint campaign by European Commission President Ursula von der Leyen and South African President Cyril Ramaphosa has mobilised €15.5 billion to accelerate Africa’s shift to renewables. The initiative aims to widen electricity access, support industrial decarbonisation and spur economic growth.
President von der Leyen said the investment would advance Africa’s clean-energy transition and bring power to households, businesses and communities.
“Today, the world has stepped up for Africa. With €15.5 billion, we are turbocharging Africa’s clean-energy transition. Millions more people could gain access to electricity, real, life-changing power for families, for businesses, for entire communities.
“This investment is a surge of opportunity: thriving markets, new jobs, and reliable, clean energy that meets the needs of partners across the globe. President Ramaphosa and I both look forward to a clean-energy future for the continent. A future led by Africa, with strong support from its friend and partner, Europe,” President von der Leyen said.
