- Renewable energy and hydrocarbon development must advance together to close the electricity gap.
- Strategic financing, regulation, and the adoption of technology are critical to achieving Africa’s energy goals.
Africa faces a critical energy challenge, with nearly 600 million people still lacking electricity. Consequently, many households rely on polluting fuels such as wood and biomass for cooking. Despite these challenges, the continent holds enormous potential.
Africa’s energy wealth presents an opportunity to rapidly improve electricity access. In fact, Africa’s energy future depends on effectively exploiting both clean and hydrocarbon resources. The continent has around 214 billion barrels of oil equivalent in proven oil and gas reserves. At the same time, Africa hosts world-class solar and wind resources, including about 40% of the world’s top solar potential.
Furthermore, hydropower remains a reliable source for countries with rivers and dams. Africa also produces key minerals, including cobalt, platinum, and manganese. Growing outputs of copper, lithium, and rare earth elements support renewable technologies and industrialisation.
Despite these resources, development is hindered by weak regulations, limited financial resources, and underdeveloped gas markets. Global attention often criticises emissions, although Africa contributes just 3.5% of global greenhouse gases. Therefore, a dual-track approach is needed. This combines renewable energy expansion with optimised hydrocarbon use.
Clean energy can rapidly increase access to electricity. Wood Mackenzie forecasts almost 600% growth in solar and wind capacity over the next decade. Given limited utility budgets, investment should focus on decentralised solutions such as mini-grids, solar and storage systems, and off-grid electricity.
However, Africa attracts only 2% of global energy investment. Expanding concessional and blended financing, along with strategic support from China, could accelerate projects across the continent.
Simultaneously, Africa must maximise hydrocarbon resources. Only a third of the discovered oil and gas has been commercialised. Countries like Nigeria plan to double oil and gas output by 2030, while Angola pursues higher liquids production outside OPEC.
Gas revenues, averaging $109 billion annually, will support economic growth and replace diesel in power generation. Governments are improving regulations, enforcing gas master plans, and developing domestic consumption.
Africa is also reducing its upstream emissions, which currently account for less than 9% of global levels. Anti-flaring laws, carbon-neutrality policies, and low-carbon offshore projects are underway. The African Energy Bank supports funding for smaller oil and gas fields.
With a projected population of 2.5 billion by 2050, only a balanced strategy can ensure access to electricity, foster industrial growth, and pave the way for a sustainable energy future.