News Industry

Renewables Rise in Africa, but the Grids Are not Keeping Up Yet

Renewables Rise in Africa, but the Grids Are not Keeping Up Yet
Monday, 20 October 2025 10:51
  • Africa’s grid lag threatens renewable energy rollout, experts warn
  • Transmission investment under 15% of power spending, IEA says
  • $454B needed by 2030 to modernize power networks, AfDB estimates

Africa’s energy transition could stall unless the continent rapidly expands and strengthens its power transmission networks, Keith Katyora, head of power systems at the Energy Council of South Africa, said on Thursday, Oct. 16, 2025, according to Ghanaian media reports.

Katyora said renewable projects are advancing faster than the infrastructure needed to connect them to consumers. The International Energy Agency’s World Energy Investment 2024 report backs this view, showing that spending on African electricity grids represents less than 15% of total power investment — well below the global average of more than 40%.

Renewable generation is growing quickly, with new solar and wind projects planned across Africa. In South Africa, state utility Eskom estimates it will need 14,200 kilometers of additional transmission lines by 2035 to accommodate rising renewable capacity.

To close this gap, South Africa’s Energy Ministry launched the Independent Transmission Program (ITP) in 2024, allowing private companies to build and operate parts of the national grid.

Across the continent, the African Development Bank (AfDB) estimates the power sector will require $454 billion in investment by 2030, much of it for transmission and distribution. In March 2024, the AfDB and World Bank announced a $1.3 billion regional fund to improve power links in Southern and East Africa — part of efforts to cut energy losses that the IEA puts at nearly 15% across the continent.

The AfDB and the International Monetary Fund (IMF) note that more than 60% of Africa’s state-owned power utilities operate at a loss, limiting their ability to finance grid upgrades. The resulting infrastructure gap could leave much of the continent’s new green capacity underused.

The IEA warns that without faster network expansion, a growing share of generated electricity will never reach consumers — undermining the profitability of clean-energy projects and slowing progress toward universal access.

Abdel-Latif Boureima 

On the same topic
Australian junior secures about $2.3 million to fund exploration at Kameelburg Drilling and feasibility work to move forward on large rare earth...
Ghana mining body disputes claim firms repatriate only 20% revenues Chamber says true repatriation 70.8%, including commercial bank...
Ghana to build 1,200 MW gas-fired plant, groundbreaking by end 2026 Rising electricity demand drives expansion; peak consumption hits 4,300...
Dangote refinery begins direct jet fuel supply to Ethiopian Airlines High fuel costs strain African airlines, exceeding global...
Most Read
01

Standard Chartered arranges $2.33 billion for Tanzania railway project Funding support...

Tanzania Secures $2.33 Billion in Syndicated Financing for Standard Gauge Railway
02

From WHO-led efforts to strengthen pandemic preparedness to measles vaccination drives in Uganda, al...

Weekly Health Update | Africa Steps Up Pandemic Preparedness as Health Sovereignty Takes Center Stage
03

Mediterrania Capital bought Australian Amcor's Moroccan packaging unit Enko Capital took ov...

Two Other African-focused Private Equity Firms to Snap Up assets shed by Global Majors
04

Ecobank named alongside AfDB, ECOWAS, EBID and BOAD in the April 27, 2026 corridor financing mis...

Ecobank's Quiet Inclusion in the AfDB Mission Reshapes the Abidjan-Lagos Corridor Story
05

Jetour to produce T1, T2 SUVs in South Africa from 2027 Chery to acquire Rosslyn plant, cre...

Chinese Automaker Jetour to assemble SUVs in South Africa from 2027
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.