- According to the Global Association for the Off-Grid Solar Energy Industry (GOGLA), Africa needs an estimated $21.3 billion in investments by 2030 to provide electricity access to underserved populations.
- The World Bank and African Development Bank plan to deliver electricity to 300 million people across Africa by 2030, committing $30 billion and seeking an additional $90 billion from private investors.
Most African countries, especially Nigeria and other low-income nations, will require approximately $21.3 billion in investments by 2030 to provide energy access to their underserved populations. This estimate comes from the Global Association for the Off-Grid Solar Energy Industry (GOGLA), which notes that the required funding is six times greater than the investments currently attracted in the sector.
To tackle this energy gap, the World Bank and the African Development Bank are collaborating on an ambitious plan to deliver electricity to 300 million people across Africa by 2030. They have committed $30 billion to the initiative and are seeking an additional $90 billion from private investors to fund the project.
Despite Africa being viewed as a prime destination for wind and solar energy investments, several challenges impede progress. The most significant obstacle is the lack of grid infrastructure, compounded by widespread poverty that makes electricity unaffordable for many households. GOGLA estimates that around $3.6 billion annually will be necessary to extend electricity access to those without it over the coming years.
Access to finance remains a critical challenge for the off-grid solar industry, as highlighted in GOGLA’s latest report. Alarmingly, 2022 marked the first time in two decades that the number of people living without electricity increased, reaching 685 million. Most of these individuals reside in sub-Saharan Africa, where the proportion of the unserved population has surged from 50% in 2010 to 85% in 2022.
GOGLA asserts that off-grid solar solutions are the most cost-effective way to electrify areas lacking power infrastructure. However, the sector requires substantial financial backing from various entities to fulfil its potential. The organisation proposes a mix of debt, subsidies, and innovative financing mechanisms to stimulate investment in off-grid solar projects.
As Africa strives to meet its energy needs, focusing on off-grid solutions offers a unique opportunity to expand electricity access while promoting economic growth and improving living standards. Addressing the challenges of investment and infrastructure will be essential for transforming the energy landscape in Africa, particularly in underserved regions where reliable electricity remains a distant goal. Coordinated efforts among governments, financial institutions, and private investors will be crucial in mobilising the necessary resources to achieve these ambitious targets by 2030.