• Urges shared standards, regional financing, and cross-border power trade
• High capital costs, debt, and fragmented regulation still constrain growth

South African state utility Eskom has urged African governments to work more closely together to attract large-scale investment in renewable energy. The appeal came during African Energy Week 2025, which wrapped up on Friday, Oct. 3.

Rivoningo Mnisi, Executive Director of Eskom’s Renewables Division, said Africa needs a unified regulatory framework to reassure investors wary of the continent’s high risk profile. She called for shared policies and standards on regulation, incentives, and grid connections to speed up the rollout of solar, wind, and hybrid projects.

Mnisi said the goal is to remove technical, financial, and policy barriers that continue to hold back energy financing across the continent. She also proposed creating a pan-African body to coordinate and finance large-scale renewable projects, including cross-border electricity trade.

Funding Hurdles Underscore Urgency

Africa’s green energy transition faces persistent funding challenges. The International Energy Agency (IEA) estimates the continent must mobilize around $22 billion annually to connect all households to the grid by 2030, as nearly 600 million people still lack access to electricity. Another $4 billion per year is needed to expand access to clean cooking solutions.

Clean energy investment in Africa topped $40 billion in 2024, according to the IEA’s World Energy Investment report, an improvement, but still far below what is required. Despite vast solar and wind potential, Africa has attracted only about 3% of global renewable energy investment over the past two decades.

The challenge is worsened by the high cost of capital. A study by the Clean Air Task Force found that financing African energy projects costs an average of 15.6%, more than three times the rate in Europe or the United States, sharply raising project costs.

Macroeconomic pressures, including currency depreciation, high interest rates, and debt servicing burdens, are further limiting investment. The IEA estimates that debt payments could absorb up to 85% of Africa’s total energy investment capacity in 2025.

In the short term, Eskom’s proposal could prompt regional talks, especially within the Southern African Power Pool, on harmonizing regulations, improving cross-border power trade, and pooling major projects to build a more integrated and efficient energy market.

Abdel-Latif Boureima