Absa’s Izaak Coetzee urges policy reform, infrastructure upgrades and finance to drive Africa’s energy transition.

Africa remains one of the least electrified regions in the world, despite possessing abundant renewable energy resources

In a recent commentary, Izaak Coetzee, head of strategic insights & analytics at Absa Group, highlighted the continent’s untapped energy potential and the urgent need for policy reform, infrastructure development and innovative financing to close the energy gap.

From a satellite view, Earth’s glowing urban centres reveal widespread access to electricity. However, Africa appears largely dark — a visual reminder that over half a billion people across the continent still live without power. Coetzee describes this as both a “human development crisis and a missed economic opportunity.”

Africa is rich in renewable resources, with the potential to generate 1.5 million terawatt hours (TWh) annually from solar power alone. Wind energy could contribute another 980,000 TWh, alongside 350 GW in hydropower and 15 GW in geothermal capacity. Yet, despite holding 60% of the world’s best solar resources, Africa accounts for just 1% of installed solar generation. Studies show that renewables could meet up to 80% of the continent’s energy needs by 2040, but the challenge lies in converting this potential into viable, scalable systems.

“Africa is not only key to its own energy transformation, it is central to the global clean energy transition,” Coetzee stated.

He pointed out that over US$20bn in annual investment is needed to meet Africa’s energy and climate targets by 2030. However, only 2% of global clean energy investment currently flows into the region. To change this, Africa must adopt transparent, investor-friendly regulatory frameworks that provide predictability and legal protections.

With South Africa poised to assume the G20 Presidency, Coetzee sees a unique opportunity to reposition Africa as a leader in renewable energy. He believes regional collaboration, smart policies and good governance are essential to unlocking the continent’s clean energy future.

Coetzee also emphasised the importance of first fixing the continent’s outdated energy infrastructure. Average grid losses are around 15%, and weak interconnectivity means even the best renewable projects fail to serve remote or rural communities.

He noted, “Without reliable transmission and distribution networks, capacity growth is meaningless.”

Africa’s regional power pools, such as the Southern, Eastern, Central and West African Power Pools, hold promise for building integrated electricity systems. However, Coetzee argued that investment must first target key infrastructure projects to modernise the grid and connect energy-rich areas with high-demand regions.

On financing, Coetzee called for innovative solutions tailored to Africa’s unique challenges. “To create a truly investable environment, African energy markets need more than ambition,” he said. “They require deep structuring expertise and innovative finance solutions.”

Absa has been at the forefront of sustainable financing, facilitating over R49.2 billion in green investments in 2024 alone. The bank played a major role in South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) and supported Tanzania’s first municipal green bond through the Tanga UWASA initiative, which provided clean water access to over 6,000 households.

“These projects illustrate the power of partnership, technical depth and local insight to turn Africa’s potential into progress,” Coetzee remarked.

With Africa expected to account for more than 25% of the global population within the next 25 years, the urgency to electrify its future is more pressing than ever. As Coetzee concluded, “The tools exist. The capital exists. The renewable resources are abundant. What remains is the political will, policy coherence and financial innovation to translate ambition into action.”

AfDB backs Niger with US$144.27mn to reform energy laws, boost electricity access, and drive inclusive growth

The African Development Bank (AfDB) Group’s board of directors has approved a loan of US$144.27mn to support the first phase of Niger’s Energy Sector Governance and Competitiveness Support Program, a comprehensive initiative designed to reform energy sector laws and address the country’s critical electricity shortage

The program aims to tackle governance challenges by enhancing public financial management, with a strong focus on improving tax revenue mobilisation and control systems. It will also support the clearance of domestic arrears, facilitate public-private dialogue, and promote the adoption of an industrial and commercial policy to strengthen local businesses.

"This program represents our commitment to supporting Niger's economic recovery and energy independence," said African Development Bank director general for West Africa Lamin Barrow. "By improving access to energy and strengthening governance frameworks, we are helping to lay the foundations for sustainable growth that will benefit all Nigeriens, particularly the most vulnerable populations."

AfDB’s funding will support Niger’s energy targets, including raising electricity access from 22.5% to 30% by 2026, and boosting the manufacturing sector’s contribution to GDP from 2.5% to 3.8%. A key part of the program is focused on renewable energy, aiming to add 240 MW of solar capacity by 2030, with 50 MW set to come online before December 2026.

The initiative is rooted in social inclusion, with dedicated measures for internally displaced persons, women, and youth. Currently, over 507,000 Nigeriens have been displaced due to regional security concerns. The program includes targeted efforts to create improved economic opportunities for these vulnerable groups.

Despite facing challenges, Niger’s economy has shown resilience, posting a GDP growth rate of 8.8% in 2024. Oil production is also expected to rise significantly, from 20,000 to 90,000 barrels per day by 2026. However, electricity access remains low, only 22.5% of the population is connected to the grid, with rural access standing at just 4.5%, forcing the majority to rely on biomass for 94% of their energy needs.

The government’s strategic energy compact, already adopted by decree, sets the groundwork to attract US$527mn in private sector investment by 2030. The initiative will also establish high-level coordination mechanisms and update national energy policies to create a conducive environment for private investment in mini-grid solutions—crucial for extending electricity access in rural communities.

By leveraging its abundant renewable resources and enhancing governance, Niger is positioning itself for inclusive and sustainable development, with support from strategic partners like the African Development Bank.

SANY is deepening its Africa footprint. (Image source: SANY)

China’s SANY has commenced work on a 10 MW solar photovoltaic (PV) power plant in Zimbabwe as part of a mining project

In a statement, it reported that work commenced at the end of June, with the project being “undertaken by a Chinese mining company” working in the country.

It marks SANY’s first solar energy project in Zimbabwe. It also marks the first in Africa to adopt an innovative ‘EP+F’ business model, the statement noted, which integrates engineering, procurement, and financing into a customised solution to meet customers’ financial needs.

“As the first EP+F business model of SANY Silicon Energy, the project offers a replicable framework for future international renewable energy collaborations,” the SANY statement noted.

“By significantly reducing the financial burdens for customers, the model enhances the accessibility and feasibility of clean energy adoption in emerging markets.”

It added that the customer “expressed confidence in future cooperation with SANY in broader areas, including microgrids, e-trucks, and EV charging infrastructure.”

The project itself adopts SANY's self-developed 710 high-efficiency photovoltaic modules, paired with advanced inverters and high-strength support brackets and is scheduled for grid connection by the end of 2025.

Once operational, it is expected to generate 18 million kWh annually, easing power shortages and boosting electricity supply for local industries.

The project in Zimbabwe follows a previous solar installation in 2024 in neighbouring Zambia, with the connection to the grid of SANY’s Mining Microgrid Power Project, marking Africa's first and largest single-unit ‘solar + storage + diesel’ project, according to the Chinese group.

The first phase of this project, now in service, can generate 16 million kWh of electricity annually.

It also triggered interest in additional projects, with SANY signing three similar microgrid initiatives in Zambia since last year’s launch.

The deepening involvement in southern Africa’s mining and power industries reflects a change in approach to the continent by SANY, with the shift to projects and away from pure machinery sales.

“After a 23-year friendship with Africa, SANY's cooperation with the continent has evolved beyond only equipment trade [to] a more sustainable collaboration,” it noted.

In Africa, more than 50% of its workforce is now locally hired, contributing over 5,000 local job opportunities.

“Looking ahead, SANY will continue to leverage its technology and management strengths to build a robust local supply chain, supporting Africa's green energy and economy growth,” the statement added.

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Qair tapping into desert power (Image source: AfDB)

Independent renewables developer Qair has received a boost for its 18 MW Dédougou solar energy project in Burkina Faso, securing €6mn (US$6.9mn) in concessional financing from the Sustainable Energy Fund for Africa (SEFA)

It marks a significant milestone towards increasing the country’s energy generation capacity, as Qair unlocks a second phase of its solar power ambitions.

“After commissioning our first 24 MW solar plant in Zano in 2023, this second project in Dédougou reflects our expanding footprint and aligns with Qair’s long-term strategy to accelerate the energy transition across Africa,” said Abdoulaye Toure, CFO of Qair Africa.

SEFA, a multi-donor fund that provides catalytic finance to unlock private sector investments in renewable energy and energy efficiency, is managed by the African Development Bank (AfDB).

The latest support for Dédougou comprises a €2.5mn (US$2.9mn) senior concessional loan and a €3.5mn (US4mn) reimbursable grant, complemented by a combination of subordinated and senior loans from the Dutch Entrepreneurial Development Bank (FMO), facilitated by advisors A&O Shearman and Trinity.

“This new financing from FMO and SEFA marks a significant milestone in Qair’s journey in Burkina Faso,” said Toure.

“We are deeply grateful to both institutions for their continued trust and support, which enable us to deliver impactful renewable energy infrastructure in the region.”

According to the AfDB, the Dédougou solar plant demonstrates the potential for private-sector-led future renewable energy projects not only in Burkina Faso, but across the Sahel region.

In a statement, it said the project aligns with the bank’s Desert-to-Power initiative, which aims to turn the Sahel region into the world’s largest solar power zone.

The project is also listed as a priority project in Burkina Faso’s national Desert-to-Power roadmap and among the first independent power producers (IPPs) in the country, operating under a 25-year Power Purchase Agreement with state utility, Société Nationale d’Électricité du Burkina Faso (SONABEL).

"The Dédougou Solar PV project marks a significant milestone for Burkina Faso and the broader Sahel region,” said Dr. Daniel Schroth, AfDB’s director for renewable energy and energy efficiency.

Once operational, the plant will also help diversify Burkina Faso's energy mix, cut electricity costs, and boost access to reliable, affordable electricity.

Dédougou also steps up Qair’s own deepening Africa exposure.

With 1.7 GW of capacity in operation or construction, the group is developing a portfolio pipeline of 34 GW across 20 countries across Europe, Latin America, and Africa comprising solar, onshore and offshore wind, hydroelectric, tidal energy, waste-to-energy, battery storage, and green hydrogen production.

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