The report, authored by Kamil Maqsood, Senior Business Analyst, examines the significant challenges Africa’s power sector faces, particularly in renewable energy investment and deployment. A key issue is that electricity tariffs across many African economies are not cost-reflective, making generation, transmission, and distribution unattractive for private investment. This challenge is compounded for renewable energy, where high infrastructure development costs are a barrier. Transmission and distribution (T&D) losses, which increased from 15% in 2015 to 17% in 2022, further discourage investment. The heavy subsidies in the sector suppress market price signals, limiting the government’s ability to reinvest in much-needed upgrades and expansions of T&D infrastructure, essential for renewable energy deployment.  

If Africa does not transition toward renewable energy, it risks losing access to climate finance and key export markets, particularly the European Union. With 44% of the population—600 million people—lacking access to electricity and those connected often facing unreliable power, the continent’s energy infrastructure is under strain. Despite abundant renewable resources such as solar, wind, and hydro, much of this potential remains untapped. 

The report explores Africa’s renewable energy landscape, identifying obstacles to progress and proposing solutions for achieving a comprehensive energy transition. 

Follow this link to learn more: Renewable Energy Targets, Challenges and Solutions 

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