Energy

Solar power is growing fast in Africa (Image source: Adobe Stock)

Africa’s love for solar power shows no sign of easing up

The continent is on track to install 17 GW of solar in 2026 — up 45% year-on-year, according to new analysis by energy think tank, Ember, in collaboration with African Tech Futures Lab.

It would represent the third consecutive record year for African solar installations, the analysis notes.

Solar growth is also spreading across the continent: 36 of Africa’s 54 countries are expected to install record volumes of solar in 2026.

The analysis also shows that 19 countries have seen year-on-year growth of over 100%, including 544% in the Democratic Republic of the Congo (DRC), 282% in Zimbabwe and 176% in Egypt.

South Africa, once responsible for over half of the continent’s solar imports, will account for less than a fifth of installations in 2026 as growth spreads to new markets.

Key findings

The new solar installed in 2026 alone is expected to generate around 23 TWh a year, enough to meet Africa’s average annual electricity demand growth over the past decade.

In more than half of Africa’s 54 countries, the rise in solar generation is expected to exceed the historic pace of demand growth.

Ten countries, home to a combined 190 million people, will see 2026’s new solar add more than 10% to annual electricity generation: Sierra Leone (97%), Togo (24%), Somalia (21%), Djibouti (21%), DRC (14%), Comoros (14%), Namibia (12%), Liberia (12%), Chad (11%) and Lesotho (10%).

Africa’s solar panel manufacturing is also set to quadruple in 2026, reaching around 3.5 GW as new plants come online in Egypt and Tanzania.

However, most of this output is destined for export to the US — 94% of the panels installed across Africa are still imported from China.

Data challenges

Despite the challenges of collecting data on the growth of solar power across the continent, there is little doubt that the trajectory is upwards.

Only three African countries – South Africa, Tunisia and Tanzania – currently publish solar capacity data every quarter or more frequently.

The analysis finds official reporting on national solar capacity for just 36 of Africa’s 54 countries, and only 14 of those had 2025 data, even that likely undercounting real installations.

However, that is starting to change: at least 15 African countries now have solar registration and permitting systems at an advanced stage, with several already in force, a step Ember and African Tech Futures Lab say is essential if planners, grid operators and regulators are to see the market they are trying to manage.

An estimated three-quarters of the solar capacity added across Africa between 2023 and 2025 was distributed solar — a category largely missing from official national and international statistics.

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Financial close for SA's Lion Thorn Solar Park

ePointZero to buy Azura Power majority share

Tassili DZ Power, Yuchai plan Algeria genset factory 

Construction set to begin on South Africa's Lion Thorn Solar Park project (Image source: Adobe Stock)

UAE-based Yellow Door Energy and Nedbank Corporate and Investment Banking (Nedbank CIB) have announced financial close on the 49 MWp Lion Thorn Solar Park in South Africa

It comes as South Africa’s electricity sector enters a more stable phase, with state utility Eskom reporting recently a second consecutive annual profit and the country passing 470 days without load-shedding.

At the same time, private investment is increasingly helping to add new generation capacity as the electricity market opens to a wider range of developers, traders and corporate offtakers.

Nedbank CIB is financing the Lion Thorn Solar Park project, enabling construction work to proceed at Leeudoringstad in North West Province.

Utility-scale project

The utility-scale project has secured long-term power purchase agreements with PPC and POWERX, a NERSA-licensed private electricity trader.

Once operational, it is expected to generate approximately 115 gigawatt-hours of renewable electricity in its first year and avoid an estimated 104 190 tonnes of carbon emissions annually.

John Taylor, managing director for Yellow Door Energy South Africa, said reaching financial close demonstrated the company’s ability to develop bankable, large-scale renewable energy projects in the country.

“The project will provide reliable, cost-effective clean electricity to our customers while supporting energy security, economic growth and the country's transition to a lower-carbon future,” he said.

Private investment

The transaction comes as private investment in South Africa's electricity sector continues to grow and supports the development of new renewable generation capacity while contributing to South Africa's energy transition, long-term energy security and economic growth.

In 2025, NERSA-registered private generation projects represented an estimated R158bn in investment and 7,464 MW of generation capacity.

Hlatse Nkune, principal of power and renewables finance at Nedbank CIB, said South Africa's electricity market is evolving, creating new opportunities for renewable energy developers, traders and corporate customers.

“Lion Thorn Solar Park demonstrates how innovative financing and long-term offtake arrangements can unlock new generation capacity, strengthen energy security and support the country's transition to a more sustainable energy future,” said Nkune.

“Transactions such as these are critical to accelerating private sector participation in the energy market and expanding access to reliable electricity.”

Construction update

Construction work on the site is now scheduled to begin during September, with commissioning anticipated in 2028.

The project is also expected to create employment and economic opportunities during construction and operations.

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Tassili DZ Power, Yuchai plan Algeria genset factory

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The 461MW Azura-Edo independent power plant near Benin City, Edo State, Nigeria (Image source: Azura Power)

In a deal that reflects growing interest in Africa’s energy sector, Abu Dhabi’s ePointZero is acquiring a 90% stake in Azura Power, marking a major entry into the continent’s power generation market

The deal also provides Azura with the long-term capital and strategic backing needed to accelerate its expansion and help address Africa’s growing electricity deficit.

Azura Power operates 752 MW of operational capacity across three assets, all underpinned by long-term power purchase agreements:

Nigeria: Azura-Edo (461 MW)

Senegal: Tobene (116 MW)

Mozambique: CTRG (175 MW)

"Reliable power is fundamental to economic growth, industrial development and long-term prosperity,” said Sheikh Zayed bin Hamdan bin Zayed Al Nahyan, chairman of 2PointZero.

“This investment through ePointZero reflects our commitment to deploying long-term capital into critical infrastructure that can support that growth in key markets across Africa.”

Development pipeline

The funding also offers a platform to Azura Power to pursue its current development pipeline, which comprises more than 1.5GW of gas, renewable and BESS projects across the continent.

Dave Peacock, Azura Power’s CEO, called the transaction a significant milestone for the company.

“Azura is well positioned to build on its strong foundations, broaden its opportunity set and accelerate its growth across Africa's energy sector,”he said.

Africa's power market is entering a period of sustained investment as population growth, urbanisation and industrial development drive demand for new generation capacity.

Electricity demand across the African region is expected to nearly double by 2040.

Yet, electricity access across sub-Saharan Africa remains at roughly 55% according to the World Bank, underscoring both the scale of infrastructure needs and the opportunity for long-term private capital.

Transaction terms

Under the transaction terms, ePointZero has partnered with Amaya Capital to establish an acquisition vehicle, through which ePointZero will acquire the respective ownership stakes of Actis and Africa50.

Amaya Capital, Azura Power's founding partner, will retain a minority interest of 10%, underscoring its continued confidence in the future growth of the platform it founded in 2010.

Completion of the transaction is subject to customary regulatory approvals and closing conditions.

Mariam Almheiri, vice chair and managing director, 2PointZero, said the deal reflects its approach to investing in businesses with strong fundamentals, local expertise, and long-term value.

It continues other recent interest by the company in Africa’s expanding energy sector, including an investment in Egypt’s Elsewedy Electric.

Mohamed Hesham, CEO of ePointZero, said Azura Power brings together many of the qualities it looks for in an energy platform: critical operating assets, an experienced management team and a strong position in markets with significant long-term power needs.

“We are acquiring a business built on nearly a decade of disciplined execution, with significant opportunity to support its continued growth as demand for reliable power infrastructure across the continent accelerates,” he said.

“Together with our strategic investment in Elsewedy Electric and its established industrial and EPC presence across Africa, our acquisition of Azura Power deepens ePointZero's capabilities in energy and infrastructure and positions us to pursue new opportunities across Africa's evolving energy markets."

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Tassili DZ Power, Yuchai plan Algeria genset factory

On-site power boost for Kamoa Copper

Tanzania opens Julius Nyerere hydropower plant

The new factory aims to capitalise on AfCFTA opportunities (Image source: Adobe Stock)

Algeria’s Tassili DZ Power is courting investment as it seeks to expand in-country power manufacturing utilising Yuchai (Guangxi Yuchai Machinery Group) engines

As well as growing Algerian manufacturing capacity, the long-term goal is to take advantage of emerging export opportunities for gensets arising from the African Continental Free Trade Area (AfCFTA).

“Tassili DZ Power is launching Algeria’s premier power generation and energy storage factory — a national industrial project, and we're opening the door to partners right now,” said Ouahid Arous, sales director Yuchai and managing Yuchai G-drive Marine Engine, writing in a post on social media.

Tassili Power Generation in Algiers, which has a long partnership with Yuchai, has a track record in supplying diesel and natural gas gensets to customers across the country, from Saharan oil camps and desert telecom sites to coastal hospitals and highland farms.

The planned manufacturing project includes:

• 6,000 generator sets per year (30–3,500 kVA)

• 250 hybrid power units per year (250–2,500 kW)

• 300 MWh per year of battery energy storage (BESS)

• Smart factory: robotics, AGVs, ISO 8528-certified test bays

• Training & R&D centre powering Algerian skills

• 500+ direct jobs for Algerian engineers and technicians

In his post to LinkedIn, Arous flagged the strategic role of Yuchai and other partners in the proposed manufacturing project.

“Our gensets will be built on world-class Yuchai engines — China's leading engine manufacturer — paired with Leroy-Somer alternators. Proven technology, assembled and tested in Algeria, by Algerians.”

He also called for investors and equity partners to join the project as the venture seeks to raise an additional US$79.5mn in funding.

“Algeria’s genset imports fell 65% — the market is ready for local production,” he added.

The proposed manufacturing site will cover around 100,000 square metres in the Algiers area, with Arous flagging the Rouïba, Réghaïa, Oued Smar industrial corridor or an equivalent industrial zone.

This will include 40,000 square metres of production halls, plus test yards, logistics and space for future expansion.

The venture is also interested in hearing from industrial and mechanical contractors for the provision of overhead cranes and gantry systems (10–50t); steel structure erection and industrial buildings; ventilation, compressed air and industrial utilities.

“From Algiers to Africa: with AfCFTA, this factory will export Algerian-made power across the continent,” he added.

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