Africa needs $277bn yearly to achieve 2030 SDGs — says panel

•   Continent has world’s highest solar potential, but only 5-GW  installed so far

• Panelists stress need for continent to leverage its solar potential to drive sustainable solutions

Ben Eguzozie

Africa requires not less than an annual investment of $277 billion over the next six years to achieve its 2030 Sustainable Development Goals (SDGs), as reported by Africa50, a pan-African infrastructure investment platform. With the world’s highest solar potential, the continent has only tapped into 5 GW of installed solar capacity thus far, highlighting immense room for growth.

Molly Gbodimowo, director of Africa50, while discussing the continent’s abundant renewable resources, stressed that harnessing these could significantly contribute to Africa’s sustainable development and economic growth. According to Gbodimowo,as Africa continues its journey towards a more sustainable future, strategic investments in renewable energy and other critical sectors will play a crucial role in realising these ambitious goals.

During the recent Invest in African Energy (IEA) forum in Paris, panelists discussed Africa’s vast solar potential and its implications for investors seeking scalable, long-term financial prospects. They noted that despite possessing 60 percent of the world’s best solar resources, Africa’s solar power development presents numerous untapped opportunities.

Focusing on strategies to finance renewable energy projects across the continent, the panel highlighted the significance of renewable resources in Africa’s pursuit of universal electricity access by 2030. The IEA estimates that more than half of new connections added between 2022 and 2030 will rely on mini-grids and standalone systems, pointing out the need for strategic investments and partnerships to make the most of Africa’s renewable energy resources.

In another development, participants, including independent power producer ENGIE Energy Access, engaged in discussions about the deployment of solar energy to address Africa’s electrification challenges. With a strong commitment to improving access to electricity across the continent, ENGIE Energy Access is currently undertaking a $60 million mini-grid project in Nigeria. Upon completion in 2026, the project aims to connect over 150,000 people to the grid.

Data from the International Energy Agency (IEA) highlights that the number of Africans without access to electricity decreased from 860 million in 2018 to 770 million in 2019, representing 38 percent of the continent’s population. Nigeria, Africa’s most populous nation, faces a significant energy access gap, with over 90 million of its 220 million people lacking reliable and affordable electricity.

Marie Testard, head of Funding at ENGIE Energy Access, emphasised the company’s goal to bridge this gap, addressing the urgent need for energy solutions and contributing to the continent’s sustainable development and economic growth.

“ENGIE Energy Access is the energy access company that aims to deploy this solution in sub-Saharan Africa, and so far, we have a presence in nine countries, building almost 10-GW of mini-grids,” she added.The pan-African infrastructure investment platform, Africa50 Group,also noted that it has successfully garnered $222.5 million in commitments from African institutional investors in January. This infusion of capital positions the group to deploy a robust pipeline of renewable energy infrastructure projects, ultimately addressing the continent’s pressing energy needs while fostering inclusive and sustainable development.

Participants at the IEA forum underscored the vital role of public-private partnerships and creative financing mechanisms in advancing renewable energy initiatives in Africa. They highlighted the significance of local institutions and a conducive investment climate in attracting the necessary capital to drive these efforts.

It was also agreed that Africa’s transition towards a more sustainable future depends on a collaborative effort among international stakeholders in the continent’s energy sector. This involves divesting from carbon-intensive resources and redirecting investments towards renewable energy sources, ensuring a balanced and environmentally-friendly approach to meeting Africa’s growing energy demands.