… Despite soaring global investment in renewables, Africa receives just 2 per cent
—raising urgent questions about equity, access, and climate justice
By Adaobi Rhema Oguejiofor
Arecent report from the International Energy Agency (IEA) paints a picture of soaring global investment in clean energy, projected to hit $1.7 trillion by 2025. This surge, largely propelled by declining technology costs and supportive government policies, is a welcome sign for the planet. Yet, beneath this encouraging trend lies a vivid reality: a deeply uneven distribution of these crucial investments, with Africa facing a significant and concerning deficit.
The IEA’s analysis clearly shows that while clean energy is attracting unprecedented capital, particularly in solar power, the benefits aren’t reaching all corners of the globe equally. The Asia-Pacific region, spearheaded by China, dominates this investment, spending twice as much on energy as the entire European Union. This concentration highlights a critical challenge for global climate action and equitable development.
Disturbingly, Africa, home to roughly 20% of the world’s population, accounts for a mere 2% of global clean energy investment. This glaring disparity isn’t just an economic oversight; it has profound implications for energy access, sustainable development, and the collective fight against climate change.
Senior Advisor to the CEO of the Rural Electrification Agency (REA) and Head of the Solar Power Naija Programme, Barbara Izilein, once stated educating people on the social, economic, and environmental benefits of renewable energy is crucial for driving adoption, especially in rural areas, and this highlights the need for a holistic approach that includes both financial investment and public awareness
Bridging the Divide: A Call to Action for Nigeria and West Africa
In an interview with Tanko Danga, a staff member at the Rural Electrification Agency (REA), Kaduna, the strategy to close this critical investment gap and foster a more sustainable and equitable energy future entails concerted efforts from governments, investors, and international organisations.
He noted that there’s an urgent need for dedicated financial mechanisms and risk mitigation strategies to direct capital towards clean energy projects in Africa. This includes increasing concessional finance, blended finance, and innovative funding models tailored to the African context.
African governments, including Nigeria, must continue to strengthen their policy frameworks, streamline licensing processes, and ensure regulatory consistency to build investor confidence. Transparent governance and cost-reflective tariffs are essential to attracting private sector investment at scale.
Supporting emerging markets also means building local capacity, fostering domestic entrepreneurship in the clean energy sector, and ensuring that projects are community-driven and inclusive. This allows for tailored solutions that genuinely meet local needs.
“Africa has the potential to leverage global renewable energy opportunities and close the energy gap, which is crucial for Nigeria’s development.” Adding that Nigeria’s ambition to achieve net-zero emissions by 2060, alongside universal electricity access by 2030, hinges on unlocking this potential.
He further stated that a detailed action plan with specific targets and timelines is necessary for Nigeria’s energy transition plan to be successful and that “for Nigeria and its West African neighbours, seizing these opportunities means not only transforming their energy landscape but also making a vital contribution to global climate resilience and sustainable prosperity”.