Global Energy Outlook sees promise in Africa’s power transition — funds permitting

Mongabay
Mongabay
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The IEA's World Energy Outlook 2025 highlights Africa's growing energy demand amid significant investment shortfalls. Without reforms, energy poverty may persist.
Global Energy Outlook sees promise in Africa’s power transition — funds permitting
A What happened
The World Energy Outlook 2025, released by the International Energy Agency (IEA), indicates that Africa's energy demand is expected to surge by over 50% by 2040. Despite this growth, 600 million Africans still lack electricity, and many face frequent outages. The report highlights that average electricity use per person in Africa is only one-sixth of the global average. While the continent is rapidly expanding its renewable energy capacity, particularly in solar and wind, fossil fuels continue to play a major role in the energy mix. The IEA warns that without significant investment and policy reforms, many communities may remain trapped in cycles of energy poverty. Additionally, Africa has vast mineral resources essential for clean energy technologies, but most are exported in raw form, limiting local economic benefits. The report stresses that financing is the biggest barrier to clean energy investment, which has decreased significantly over the past decade.

Key insights

  • 1

    Energy demand surge

    Africa's energy demand is projected to rise by over 50% by 2040.

  • 2

    Investment shortfall

    Clean energy investment in Africa has fallen to about $20 billion annually.

  • 3

    Renewable energy growth

    Solar power is expected to provide nearly 40% of new electricity capacity.

  • 4

    Mineral resource potential

    Africa holds significant deposits of critical minerals for clean energy.

Takeaways

The IEA's report underscores the urgent need for increased investment and policy reforms in Africa's energy sector to ensure equitable access and sustainable growth.

Topics

Climate Change Sustainability Energy