The Africa Energy Review 2024 from PwC outlines how the continent’s energy landscape is shifting in response to global trends, local needs and technological innovation. Despite persistent infrastructure and financing challenges, African nations are showing significant momentum in transitioning toward a sustainable and secure energy future. Regional developments, global partnerships and policy shifts are all contributing to a more diverse and decentralised energy mix.
Global drivers and opportunities
The global energy market has been shaped by post-COVID recovery, geopolitical shifts, especially the war in Ukraine, and intensifying climate imperatives. Events like COP28 advanced renewable agendas, with Africa playing a central role. Notably, a $4,5 billion renewable energy fund was announced to support projects across the continent. Additionally, technological advancements such as tandem solar cells and AI-driven energy management systems are improving efficiency, reducing costs and enhancing resilience.
Continental trends and progress
Africa’s electricity generation capacity has increased by 48% in the past decade, mainly driven by solar and wind energy. Clean energy generation rose by 7,1% in 2023 alone, but fossil fuels still dominate in many countries. South Africa’s emissions fell to a 20-year low in 2023, partly due to increased solar and wind use in the face of coal plant underperformance. Rooftop solar installations grew rapidly, reflecting a broader move toward decentralised generation.
North Africa remains heavily reliant on oil and gas, but countries like Egypt and Morocco are making bold moves toward renewables and green hydrogen. Egypt’s Benban Solar Park and Morocco’s Noor Solar Complex are flagship projects. Algeria, while still focused on gas exports, aims for 22% renewable power by 2025.
East Africa continues to expand electricity access and renewable capacity. Kenya leads with over 75% access to electricity and a target of 100% renewables by 2030. The Lake Turkana wind farm and geothermal development are central to this progress. Ethiopia is building the continent’s largest hydropower plant (GERD), aiming to become a regional exporter. Uganda’s hydropower developments, like the Karuma plant, are enhancing capacity, though rural access still lags.
In West Africa, Nigeria is implementing a $585 billion plan to reach net-zero by 2050. While it remains a major oil and gas producer, it is also scaling solar energy, especially off-grid systems. Senegal and Ghana are advancing in solar, green hydrogen and waste-to-energy. However, access remains uneven, with just 57% of the population connected to the grid.
Central Africa, the least electrified region, is betting on hydropower and solar. The Democratic Republic of Congo and Cameroon are increasing their renewable footprint, supported by international financing and cross-border energy strategies. However, infrastructure gaps and financing remain major barriers.
Southern Africa is emerging as a renewable energy leader. South Africa dominates investment in the region with large-scale wind and solar projects and ambitious transmission upgrades underway. Namibia’s vast solar and wind potential, coupled with oil discoveries and its $10 billion green hydrogen initiative, positions it as a future energy hub. Mozambique is progressing in hydropower, solar and natural gas, despite structural challenges.
Policy, investment and market reform
The energy transition in Africa requires massive investment in infrastructure, technology and regulatory frameworks. Stakeholders emphasise the need for a just transition that is equitable, inclusive and job-generating. Natural gas is seen as a transitional fuel to complement renewables and support energy security. LNG projects in Mozambique, Nigeria and Senegal are central to this strategy.
Electricity market liberalisation is gaining momentum. Countries like Nigeria and Morocco are enabling private sector involvement in generation and distribution. South Africa, with its recent Electricity Regulation Amendment Act, is moving toward a competitive market model. Kenya, Uganda, Zambia and Ghana are also making reforms to encourage independent power producers (IPPs). In contrast, countries like Ethiopia, Algeria and Zimbabwe remain under monopolistic, state-run systems.
The shift to liberalised markets is seen as key to attracting investment and improving reliability. Kenya’s integration of IPPs and Ethiopia’s hydropower investments signal a trend toward regional cooperation and power trade. Countries are also forming cross-border energy partnerships, such as the Eastern Africa Power Pool and Southern Africa’s planned transmission expansions.
Collaboration and innovation
Public-private partnerships, blended finance and regulatory reforms are vital to scaling up energy infrastructure. Collaborative models like South Africa’s proposed Energy Users Association aim to align public and private resources to fund grid and generation upgrades. A regional approach is being promoted, particularly between southern Namibia and the Northern Cape, to develop energy corridors rich in solar, wind, oil and gas.
Education and workforce development are also emphasised, with a focus on building local expertise in solar, wind and energy storage. This will help reduce dependency on foreign skills and foster local innovation ecosystems.
Conclusion
Africa’s energy future is being shaped by a mix of innovation, policy reform, regional cooperation and global investment, from large-scale renewables to decentralised off-grid systems, and from natural gas to green hydrogen. While challenges persist, especially around financing and infrastructure, the continent is progressing toward a cleaner, more secure and more inclusive energy system.
To view the report visit www.strategyand.pwc.com/a1/en/insights/africa-energy-review.html
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