Africa Lags in Global Clean Energy Boom as Renewable Investment Hits $2.4 Trillion
Global investment in renewable energy surged to a record $2.4 trillion in 2024, yet sub-Saharan Africa captured only 2.3% of the total, according to the International Renewable Energy Agency (IRENA). While advanced economies and China dominated the energy transition, Africa received a mere $18 billion—an improvement over previous years but still a fraction of global flows. The imbalance underscores the continent’s struggle to leverage its vast solar, wind, and geothermal potential.
Oil-dependent economies, including Nigeria, now face increasing pressure to pivot from fossil fuels as global clean energy investment surpasses traditional energy spending. In 2024, renewable energy alone attracted $807 billion, with solar PV surging 49% to $554 billion. Meanwhile, investment in battery storage rose 73%, and electric vehicle spending hit $763 billion, signaling a rapidly shifting global energy landscape.
Despite the growth, Africa remains at a disadvantage. With only $15 in per-capita clean energy spending—the lowest globally—the region faces structural financing challenges. High capital costs, debt constraints, and underdeveloped financial markets continue to restrict access to critical investment. Most funds that do reach the continent are loans at market rates, with grants accounting for less than 1% of global clean energy financing.
The IRENA report also highlights widening inequalities in the global energy transition. China alone attracted $352 billion, nearly 44% of global investment, while Europe, North America, and Oceania together received the bulk of the remaining capital. Emerging economies must rely on foreign direct investment, technology partnerships, and South–South cooperation to develop local manufacturing bases and capture value from supply chains.
IRENA’s Director-General, Francesco La Camera, warned that the current pace of investment is insufficient to triple global renewable energy capacity by 2030. “Funding remains highly concentrated in advanced economies,” he said. Without scaling finance to emerging markets, Africa risks being left behind despite having some of the world’s highest solar resources and fastest-growing populations, making inclusive energy transition a global priority.
source: The Guardian