As the world gathered at the United Nations General Assembly (UNGA) this year, one message rang louder than ever: Africa’s path to sustainable development is intrinsically linked to energy access. In the corridors of diplomacy and international cooperation, our focus as a continent must remain steadfast: we must catalyse development and shared prosperity in African countries through improved energy access and sustainable energy production. This is not just rhetoric; it’s the core of my work as an energy investor and sustainability consultant.
Africa, with its abundant resources, holds immense potential to emerge as a global leader in energy. Yet, the continent grapples with the scourge of energy poverty. According to the World Bank, over 600 million people in Sub-Saharan Africa still lack access to electricity, and nearly 900 million people rely on traditional biomass for cooking. The ramifications of this energy poverty are profound, touching everything from economic growth to education, healthcare, and overall quality of life.
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The challenge: energy poverty in Africa
Energy poverty continues to impede Africa’s growth. Without reliable energy, small businesses struggle to operate, hospitals can’t function effectively, and students are unable to study after sunset. This energy deficit contributes to a 2-4 percent loss in GDP annually in some African countries, according to the African Development Bank (AfDB).
As noted in a 2023 report by the United Nations, achieving Sustainable Development Goal 7 (SDG7), which focuses on affordable and clean energy, is fundamental to solving these challenges. Energy access is at the core of poverty eradication and economic empowerment. However, to achieve this goal by 2030, Africa will require an estimated annual investment of $25 billion, tripling the current investment levels.
Solutions: mobilising capital and building technical capacity
The current investment landscape is insufficient to meet Africa’s energy needs. As I stated during my participation at side events in the 79th Session of the UNGA, we cannot generate megawatts through talks alone. For Africa to thrive, we must commit to mobilising the necessary capital, removing bureaucratic red tape, leveraging global technical breakthroughs, and building local technical capacity.
Mobilising capital:
Unlocking Africa’s energy potential demands financing on an unprecedented scale. One critical lesson I learnt five years ago in graduate school, and which I often share with like-minded peers, is that the missing link between visionary ideas and tangible impact is capital. The innovative solutions required to sustainably power Africa already exist; what’s missing is the capital and technical expertise to turn these transformative ideas into reality. Africa does not suffer from a lack of ambition or ideas—it suffers from a gap in the capital and infrastructure needed to fully realise its energy revolution. To bridge this gap, we need to unlock new financing mechanisms and attract global investments that align with Africa’s unique energy needs.
Africa’s development partners, including the African Development Bank, must work alongside private investors to ensure that financing mechanisms are both innovative and inclusive. Blended financing—combining public, private, and philanthropic capital—could be pivotal. Public-private partnerships (PPP) must play a larger role in funding major energy projects in natural gas, hydrogen, solar, wind, and off-grid solutions for rural areas.
Africa’s energy transition is not linear or uniform, requiring a pragmatic and incremental approach. Natural gas will remain a crucial part of Africa’s energy mix in the near to medium term. Nigeria’s poor gas supply has led to frequent grid collapses, emphasising the need for sustained investment in gas infrastructure alongside renewables.
During our work some time ago at Conlinks Energies, we discovered an important reality: many African homes are not currently equipped for solar energy. Poor electrical infrastructure and a lack of technical readiness mean that renewable energy solutions like solar panels are not immediately viable for everyone. For example, providing cooking gas to households in place of traditional firewood or charcoal offers a practical and immediate solution. It reduces carbon emissions while improving the quality of life for millions who rely on unsustainable, harmful energy practices.
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Africa’s energy transition journey is complex and gradual, influenced by unique local contexts. Global investors must recognise the intricacy of Africa’s journey and adopt a multi-energy investment strategy that supports responsible investments across different energy sources under stringent social and environmental standards. While renewable energy remains the ultimate goal, realistic, context-appropriate solutions must be provided to bridge the gap between current energy realities and a sustainable future. To truly empower Africa, we must embrace its complexities, invest wisely in its diverse energy needs, and walk with it at its own pace.
Leveraging global technical breakthroughs:
Advances in energy storage, battery technology, and smart grids provide fresh avenues for Africa’s energy sector to embrace new systems. One such example is Kenya’s progress in renewable energy, which now accounts for nearly 85 percent of the country’s electricity generation. These technological breakthroughs can not only increase energy capacity but also improve distribution, making it more reliable and cost-effective.
Building local technical capacity:
For sustainable energy solutions to take root, local technical capacity must be prioritised. Africa needs engineers, electricians, and technicians who are well-versed in cutting-edge energy technologies. Investing in education, training, and capacity-building programs will ensure that the continent can maintain and expand its energy infrastructure over the long term. Empowering Africa’s youth, the fastest-growing population demographic globally, to lead the continent’s energy transition is both an economic and social imperative.
Sustainable energy: Africa’s path to shared prosperity
Renewable energy is not just a major solution to energy poverty; it could serve as a cornerstone of Africa’s future economic prosperity. Reports from the United Nations and the International Renewable Energy Agency (IRENA) show that renewable energy investments in Africa could generate millions of jobs by 2030. A just clean energy transition also offers a unique opportunity for African nations to become future exporters of renewable energy technologies, unlocking new revenue streams in the global green economy.
Nigeria’s Solar Power Naija Programme is a prime example of how innovative financing, combined with government support, can deliver transformative change. By targeting off-grid communities, the program aims to bring electricity to 5 million households, directly impacting the lives of over 25 million Nigerians. Such initiatives underscore the role of localised, context-driven solutions in addressing Africa’s energy deficit.
At the same time, Africa’s natural resources can play a critical role in the global energy transition. The continent is rich in critical minerals such as cobalt, lithium, and rare earth elements, which are essential for the production of renewable energy technologies like batteries and wind turbines. Africa must sustainably leverage these resources to not only meet its own energy needs but to supply global markets, positioning itself as a strategic leader in the clean energy revolution.
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The call to action: invest, innovate, and implement
The African energy crisis is solvable, but it requires political will, financial commitment, and strategic partnerships. The pathway to sustainable energy is clear, but the road is long. We need de-risked investment frameworks and innovative templates that largely guarantee returns for investors, streamlined government policies, and capacity-building initiatives to ensure that Africa can lead in the just global energy transition.
We also cannot overlook the importance of youth leadership in this energy transformation. Africa’s young population, filled with innovation and ambition, represents the driving force behind new technologies, business models, and sustainable solutions. They are key to achieving SDG7 and ushering in an era of shared prosperity.
As I reflect on the UNGA79, my takeaway is this: Africa’s future is bright, but we must power it ourselves. As an investor and consultant, I see a landscape filled with opportunity, but it requires collective action. We must catalyse energy investment now—because powering Africa is powering prosperity, security, and equality for generations to come.
Concluding thoughts
The time for change is now. Energy access is not a luxury but a human right, and Africa is poised to lead the global just energy transition story. Together, we can banish energy poverty, unlock Africa’s full potential, and ensure that every African has access to the energy they need to thrive.
Pelumi Olugbenga is the Founder of Conlinks Energies and the Pelumi Olugbenga Fellowship. All views expressed in this article are his.
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