Roundtables Discussion Part II

Africa’s Renewable Energy Opportunity

Africa’s renewable energy potential is immense. 

According to the International Energy Agency (IEA), Africa is home to 60% of the best solar resources globally, but accounts for just 1% of installed capacity. This striking gap reflects the disconnect between the continent’s vast potential for renewable energy - from solar and hydro, to wind and green hydrogen, and the critical minerals underpinning the global green transition - and the levels of investment currently going into the sector.

While annual investment has grown from an average of less than $500m between 2000-2009 to $5bn from 2010-2020 according to the International Renewable Energy Agency (IRENA), just 2% of all financing for renewable investment since 2000 has gone to Africa, with just 3% of jobs in the sector being on the continent.

According to the Bloomberg New Economy Forum investment levels have actually fallen in the wake of the Covid pandemic, with capital deployment for new wind, solar, geothermal and other renewables dropping by 35% to an 11-year low of $2.6bn in 2021, despite a global increase of 9%. This equates to 0.6% of total investment of $434bn for the year.

This session will critically examine the opportunities for investment into Africa’s renewable energy sector, and how scale up private investment against the backdrop of a rapidly changing international energy system