James Saruchera, co-founder of Afrik. (Image source: Afrik)

As Africa races to position itself within the Fourth Industrial Revolution, the continent’s energy deficit continues to stall progress.

While AI, cloud infrastructure and smart industry capture headlines, it is energy – reliable, accessible and decentralised – that underpins the viability of every digital innovation.

“Energy is no longer just a utility – it’s the bedrock of sovereignty in a digital world,” said James Saruchera, co-founder of Afrik, a decentralised finance infrastructure built to fund real-economy projects across Africa.

“We cannot talk seriously about AI readiness or smart manufacturing without first addressing the bottlenecks in energy access and financing.”

Saruchera, who recently attended the Global AI Summit on Africa in Rwanda, pointed to a growing consensus among African policymakers and innovators: without a radical rethink of how energy infrastructure is funded, the continent risks falling behind in the very technologies it seeks to lead.

Despite holding one of the world’s richest renewable energy profiles – including vast solar, hydro and geothermal potential – Africa remains hampered by traditional, centralised financing models that often prioritise external interests and short-term returns.

“The capital is out there. The technology is out there. What’s broken is the pathway between the two,” Saruchera said.

“Right now, we’re relying on legacy systems of financing that don’t match the speed or structure of our economies. They’re too slow, too opaque and too extractive.”

Afrik’s response has been to re-engineer the infrastructure around infrastructure.

By building a blockchain-based platform to facilitate secure, transparent investment into vetted energy and digital projects, Afrik enables both institutional and citizen investors to back infrastructure in a way that’s traceable, compliant and locally anchored.

“The premise is simple,” said Saruchera. “Africans should be able to invest in and benefit from the systems that will define their future. We’re not just solving for capital – we’re solving for trust, for ownership, and for longevity.”

Afrik’s model moves away from debt-heavy, donor-led development and towards pooled, participatory finance – where individuals, communities and institutions can collectively fund projects with full visibility over how money is spent and impact is delivered.

Crucially, Saruchera sees this as more than a tech play. It’s a policy tool.

“Afrik is already receiving strong engagement from innovation ministries, regulators and institutional funds that understand the need for alternatives,” he said.

“They know we need mechanisms that are fast, auditable and scalable – especially for midsize and off-grid projects that aren’t attracting enough traditional capital.”

Afrik’s pilot pipeline includes solar mini-grids, community-level battery storage and digital infrastructure – selected not for their PR value, but for their replicability and ability to bridge energy and data needs at the same time.

“We’re focusing on real utility, not vanity,” said Saruchera. “These are the kinds of projects that can support AI labs in Kigali, keep rural clinics online in Malawi, or power last-mile logistics in Lagos.”

Asked about the pace of adoption, Saruchera is pragmatic but optimistic.

“We’re not saying this replaces traditional finance overnight – but it complements it, fills gaps and builds systems of resilience from the ground up,” he said.

“What we’re proving is that Africa doesn’t have to wait for the world to catch up. We can build financing infrastructure that’s modern, agile and fundamentally designed for our own economic architecture.”

In an era where development models are being reimagined across the Global South, Afrik’s emergence reflects a broader shift: from dependency to design, from charity to capital, from exclusion to participation.

“Africa’s energy future will not just be green – it must be governed, funded and owned differently,” said Saruchera. “If we can fix how we finance our future, the rest will follow.”

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Inside of one Phoenix Group's data installations (Image source: Phoenix Group)

UAE-based Phoenix Group has announced that it has added 52 MW of additional electricity capacity in Ethiopia to power its local bitcoin mining operations in the country

The cryptocurrency and blockchain company said the expansion increases its total operational capacity in the East African country to 132 MW.

It also raises its global capacity to over 500 MW across five countries, underlining the group’s position as one of the world’s leading bitcoin miners.

The additional capacity will be hydro power, sourced from the Grand Ethiopian Renaissance Dam, according to a company spokesperson.

In a statement, Phoenix Group said its Ethiopian operations now rank “among the most sustainable in global bitcoin mining,” with 90% of its local energy sourced from renewable hydropower via the Grand Ethiopian Renaissance Dam.

“The opportunities for future growth are immense, and we are committed to aggressively expanding our global footprint in key energy markets,” said Munaf Ali, CEO and co-founder of Phoenix Group.

“Initiatives like our latest expansion in Ethiopia are pivotal steps, not only creating significant value today but also solidifying our position at the forefront of this dynamic global industry for years to come.”

Earlier this year, the company marked its entry into Ethiopia with an 80 MW power purchase agreement (PPA), laying the groundwork for its operations in the region.

It noted that the newly secured 52 MW site will be developed in two phases.

Phase 1 will deliver 20 MW of capacity, activating 5,300 high-efficiency air-cooled mining units with an expected output of 1.2 EH/s.

Phase 2, set for completion by the end of Q2 2025, will add a further 32 MW, using hydro-cooling technology.

Once fully operational, the site’s total hash rate is projected to double to approximately 2.4 EH/s.

“With 132 MW now running on clean hydropower, we’re proud to set a new benchmark for sustainable mining in Africa and deliver large-scale operations in energy-rich regions,” said Reza Nedjatian, CEO of Phoenix Mining, AI & Data Centres.

Phoenix Group is the first crypto and blockchain company in the Middle East listed on the Abu Dhabi Securities Exchange (ADX) and operates the largest mining farm in the Middle East and North Africa region.

As well as Ethiopia, it operates bitcoin mining facilities across the UAE, USA, Canada and Oman.

“Phoenix Group has rapidly become a leading force among the top 10 global bitcoin mining companies,” added Ali, “a testament to our strategic foresight in securing prime locations with abundant, low-cost energy and our operational excellence driven by vertical integration and cutting-edge technology.”

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The new battery power unit technical demonstrator was showcased at the Perkins stand. (Image source: Alain Charles Publishing)

Perkins showcased a comprehensive range of off-highway power system technologies at bauma, from fuel flexible optimised internal combustion engines to hybrid systems and fully electrified offerings

All are designed to support customers with their diverse needs in different markets as they navigate a complex and evolving energy landscape, which calls for flexible solutions and an agile response.

Models on show included the all-new 2600 Series, an adaptable power-dense industrial engine delivering up to 515 kW (690 hp) in power. Compatible with HVO and biodiesel blends, the 2600 Series provides flexibility whilst delivering power, reliability and performance. Also on display was the new 906J-E36TA, 106kw variant of the 3.6 litre engine, which offers increased power versus the current 3.6 litre for applications that need more power in a compact package, and can run on a range of fuels.

A highlight was the new battery electric power unit technical demonstrator, which Perkins debuted at the show, designed to enable off-highway OEMs to seamlessly transition from diesel to a battery electric powertrain.

The fully integrated plug and play battery electric power unit can be ‘dropped in’ to a machine to replace a diesel engine. The system consists of a Perkins battery along with inverters, motors and on-board chargers – all packaged up into a compact drop-in system to support seamless transition from diesel to electric.

The Perkins battery electric power unit has been put to the test in a McElroy TracStar® 900i pipe fusion machine as a commercial demonstrator, with the battery electric power unit replacing a 3.6 litre 904 Series industrial open power unit. The power unit’s compact design enabled the seamless transition from diesel engine to electric, with the power unit fitting within the same chassis space and having the same mechanical connection and electrical interface points as the 3.6 litre diesel engine power unit it replaced. The work was all carried out at Perkins’ premises in Peterborough, UK.

“The customer wanted to have a zero emissions solution, so we’ve worked with them to design a full powered solution that can replace the engine with a battery electric power unit. It basically takes away the complexity and engineering challenges of integrating a battery,” explained Danielle Aiken, EAME marketing manager at Perkins.

“For many of our customers, moving to battery is a big challenge, involving a lot of engineering time and technical resource. We worked with McElroy to understand what they needed to achieve from a power standpoint, and then integrated that into the battery system. This demonstrator illustrates the journey that we have been through, and the collaboration between the OEM and Perkins to take away that complexity.”

Given the flexibility of the system, Perkins is now looking to work with different OEMs on different applications, whether it be a wheel loader, an excavator or a range of different systems. A selection of applications powered by a range of solutions were demonstrated on a video at the Perkins stand.

Discussing the Middle East and Africa markets, Aiken commented that while they are less regulated in terms of emissions, factors such as fuel consumption and energy efficiency are a concern, so the possibility of taking a traditional diesel engine and making it more power dense could be an attractive proposition.

“The new 2600 Series on show at bauma, which goes into production in 2026, is also available for less regulated territories like the Middle East and Africa,” added Annette Ward, marketing communications manager.

“To meet customer needs, the 13 litre platform is designed to achieve best-in-class power density, torque and fuel efficiency, with longer service intervals supporting the productivity of heavy duty off-highway equipment.”

Empower and AFRIGREEN partner to fund 26 solar and battery storage systems for Justrite stores across Nigeria

AFRIGREEN Debt Impact Fund has joined forces with Empower New Energy in a new debt financing initiative that will enable the rollout of at least 26 commercial-scale solar and battery storage systems across Nigeria

The initiative will deliver more than 8,000 MWh of clean energy each year to Justrite Superstores, reducing energy costs, creating jobs, and cutting approximately 4,000 tonnes of CO₂ emissions annually.

This collaboration sees AFRIGREEN—operated by RGREEN INVEST and advised by ECHOSYS INVEST—providing long-term senior debt to finance Empower’s solar energy portfolio in Nigeria. The partnership reflects a shared commitment to accelerating clean energy adoption and advancing sustainable development on the continent.

The first stage of the financing will support solar rooftop systems and battery storage units that have already been installed by Empower and its local implementation partner, Powercell, for Justrite Limited. These installations aim to deliver stable, cost-effective power while reducing reliance on fossil fuels and supporting Nigeria’s broader renewable energy goals.

Founded in 2001, Justrite has grown from a modest outlet with just two employees into a leading Nigerian retail chain, now boasting 22 purpose-built stores, over 900 staff, and a retail footprint exceeding 20,000 sq m.

“We are excited to collaborate with Empower in delivering impactful renewable energy projects in Nigeria,” said Olivier Leruste, managing partner at ECHOSYS INVEST. “This financing exemplifies AFRIGREEN’s role in accelerating the deployment of solar energy solutions for commercial and industrial companies in Africa. Empower and Justrite are showcasing the economic and environmental benefits that solar with battery storage can bring to Nigerian businesses.”

Empower New Energy’s CEO, Terje Osmundsen, added, “This agreement with AFRIGREEN Debt Impact Fund is a significant milestone in our mission to expand access to clean energy across Africa. By supporting projects like the Justrite solar rooftops with battery storage, we are not only reducing carbon emissions but also improving energy security and lowering electricity costs for businesses.”

Justrite founder and chairman, Ayo Aderinwale, emphasised the company’s commitment to sustainability. “Optimising our buildings to provide solar energy with storage is a vital part of our journey to build the most sustainable and future-proof grocery chain in Nigeria.”

Also read: Harnessing rooftop solar for global energy revolution