Representational image. Credit: Canva

Africa is undergoing a major change in the way it produces and uses energy, with clean power now emerging as a stronger driver of growth than fossil fuels. New market data shows that private sector investment in clean energy across the continent has more than doubled in just five years, rising from about $17 billion in 2019 to nearly $40 billion in 2024. This rapid growth is largely driven by economics, as solar power combined with battery storage has become the cheapest and most accessible energy option for many countries.

The year 2025 marked an important milestone for Africa’s solar sector. The continent added around 4.5 gigawatts of new solar capacity, representing a 54% increase compared to the previous year. Established solar markets such as South Africa, which added about 1.6 GW, Nigeria with 803 MW, and Egypt with 500 MW, continued to play a leading role. At the same time, solar growth is no longer limited to a handful of countries. In 2025, ten African nations crossed the 100 MW annual installation mark, double the number seen a year earlier. This reflects a broader and more balanced expansion of solar power across the continent.

Africa’s energy transition is showing a dual trend. Large utility-scale solar projects still make up more than half of total installed capacity, supplying power to national grids. However, distributed solar systems are growing just as quickly. These include rooftop solar for homes, commercial buildings, and factories, as well as on-site power systems for industries. Rising electricity prices and frequent grid outages are pushing businesses and households to invest in their own power solutions. Trade figures support this shift, showing that Africa imported a record 15 GW worth of solar panels by mid-2025, far more than what utility projects alone would require.

Despite the strong momentum, serious challenges remain. Africa has around 60% of the world’s best solar resources, yet it receives only about 2% of global clean energy investment. One of the biggest barriers is the high cost of financing. Interest rates for energy projects in many African countries are three to five times higher than those in developed markets, making projects harder to develop. In addition, old and weak grid infrastructure and long approval processes continue to slow down new installations.

Looking ahead, the future remains promising. By 2029, Africa is expected to install more than 31.5 GW of new solar capacity. To achieve the continent’s long-term goal of reaching 300 GW of solar power by 2030, experts say strong political leadership and deep reforms will be essential. Key actions include simplifying licensing processes, lowering financing risks through shared funding mechanisms, and creating clear national plans for energy storage to support grid stability. As Africa prepares for COP32 in Ethiopia, solar and storage are increasingly seen as central to economic growth, job creation, and a cleaner, more reliable energy future.

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