Africa’s renewable energy transition will depend less on raising additional capital and more on developing investment-ready projects capable of attracting financiers, according to Gori Olusina Daniel, managing partner of AP3 Advisory.
Speaking at the just concluded Early-Stage Sustainable Infrastructure Investments (ESSII) 3.0 forum, Daniel said the continent’s greatest challenge is a shortage of bankable renewable energy projects rather than a lack of investor appetite, urging governments and development partners to prioritise project preparation, blended finance and policy reforms to unlock private investment.
Addressing policymakers, development finance institutions (DFIs), infrastructure investors and renewable energy developers, Daniel outlined practical measures for accelerating investment in biogas, wind and small-scale hydropower projects across Africa.
“The challenge before us is not simply mobilising more capital. Investors are actively seeking viable infrastructure opportunities. What remains scarce are projects that have been properly prepared, supported by reliable data, commercially structured, backed by credible governance arrangements and capable of meeting the investment requirements of lenders and development finance institutions,” he said.
According to Daniel, many renewable energy projects fail to reach financial close because they approach investors before completing critical development stages, including technical feasibility studies, commercial structuring and governance arrangements.
He identified inadequate wind and hydrological resource data, weak power purchase agreements, foreign exchange risks, limited project preparation funding, governance gaps and inadequate transmission infrastructure as recurring obstacles to investment across African energy markets.
The comments come as African governments intensify efforts to expand renewable energy capacity to meet rising electricity demand, improve energy access and support climate commitments, while seeking greater private-sector participation in infrastructure financing.
Daniel said stronger project preparation would significantly improve investor confidence and increase the pipeline of commercially viable projects capable of attracting long-term capital.
Drawing on AP3 Advisory’s experience under the UK PACT Small Hydropower Programme, he highlighted the firm’s involvement in the rehabilitation and development of the NESCO Cascade Hydropower Project in Plateau State, the Ikere Gorge Hydropower Project in Oyo State and the Gari Dam Small Hydropower Project in Kano State.
He said the projects demonstrate how rigorous feasibility work, stakeholder engagement, commercial structuring and public-private partnership (PPP) frameworks can transform underutilised infrastructure assets into investment-ready opportunities.
On financing, Daniel advocated a blended finance model combining project preparation grants, concessional financing, first-loss capital, local currency guarantees, results-based financing and climate finance instruments such as green bonds and carbon markets.
“Africa does not need to choose between public and private finance. What is required is a financing structure that allocates risks appropriately and gives investors confidence throughout the project lifecycle. When project preparation is combined with blended finance and effective risk mitigation, capital follows,” he added.
He noted further that expanding access to local currency financing and credit enhancement mechanisms would help reduce foreign exchange exposure, one of the most significant risks discouraging infrastructure investment across the continent.
Beyond financing, Daniel called for reforms to improve the investment climate, urging governments to strengthen PPP frameworks, enhance power sector governance, streamline project approvals, simplify environmental permitting processes and coordinate transmission infrastructure alongside electricity generation projects.
He also stressed the importance of developing local engineering, operational and project management expertise to ensure renewable energy infrastructure remains technically reliable and commercially sustainable over the long term.
Industry observers note that while Africa possesses abundant renewable energy resources, including solar, wind, hydro and biomass, inadequate project preparation and regulatory uncertainty continue to constrain investment despite growing global interest in climate-focused infrastructure assets.
Daniel said renewable energy technologies are no longer the principal constraint to Africa’s energy transition.
“Our ability to prepare, structure and finance quality projects will determine whether Africa can unlock the investment needed to deliver affordable, reliable and sustainable energy at scale,” he remarked.
AP3 Advisory, an Africa-focused infrastructure and transaction advisory firm, supports governments, development partners and private investors in project development, public-private partnerships, climate finance and investment facilitation. The firm says its work is aimed at bridging the gap between policy ambitions and commercially viable infrastructure projects capable of driving sustainable economic growth, energy security and climate resilience across the continent.
