African LED lighting market to hit $5.5bn by 2028

The African light-emitting diode (LED) lighting market is projected to grow by 48 percent in the next five years, presenting a lucrative opportunity for businesses in the lighting sector.

According to the Africa Environment Outlook for Business report by the UN Environment Programme (UNEP), the African LED lighting market is expected to increase from $3.71 billion in 2023 to $5.49 billion by 2028.

“Driving the adoption of climate-smart opportunities across Africa relies on unleashing the potential of African entrepreneurs,” the report read.

“With a pipeline of 360 ongoing and committed sustainable infrastructure projects worth $100 billion in sectors like energy, information and communications technology (ICT), logistics, mining, and construction as of 2022, the continent offers promising investment opportunities in the transition to net zero.

“Additionally, tentative projects valued at $257 billion in the same sectors highlight Africa’s potential in green businesses.”

According to UNEP, Africa’s strategic advantage lies in significant reserves of vital minerals like bauxite, cobalt, manganese, and platinum, which account for over 40 percent of the global share.

The continent also holds viable deposits of copper, graphite, lithium, molybdenum, nickel, and zinc, essential for electric vehicles, hydrogen electrolysers, solar PV cell technology, and wind turbines. This presents exceptional opportunities for climate-smart value chain development.

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“While renewable energy projects focusing on solar, wind, geothermal, and bioenergy have experienced rapid growth in Africa, with a projected 6.4 percent increase in GDP from 2021 to 2050, green hydrogen also offers excellent potential.

“In addition to these opportunities, innovative business models and cost-effective investments in other sustainable products, such as energy-efficient cookstoves, innovative lighting solutions, and ‘cool roof paint’, offer low-hanging fruits for green businesses in Africa.”

Another promising low-cost solution is ‘cool roof paint’, which can reflect up to 95 percent of solar heat, reducing interior temperatures and the need for air conditioning.

“Successfully deployed in tropical Asian countries like India and Indonesia, ‘cool roof paint’ has proven effective in promoting energy efficiency and climate adaptation,” the report said.