• Nearly 600 million Africans lack electricity, equal to 80% of the global deficit.
• Power shortages hit telecoms, data centers, and digital services across the continent.
• World Bank, AfDB, and donors are scaling up electrification and mini-grid projects.

About 600 million Africans still have no access to electricity, representing nearly half the continent’s population and more than 80% of the global electricity access deficit, according to the UN Sustainable Development Group (UNSDG). Even populations connected to the grid face frequent outages due to aging infrastructure, insufficient investment, and poor energy management.

In South Africa, blackouts known as load shedding cost the country about 899 million rand ($51 million) a day in 2023, EcoFlow reported. The South African Reserve Bank noted that the country endured over 2,000 hours of outages in the first half of that year, disrupting start-ups, digital services, and innovation.

In Cameroon, the number of power cuts quadrupled between 2018 and 2021, according to an audit of the “Access to Energy” program by the Ministry of Water and Energy, released in early 2025 by the Audit Bench of the Supreme Court.

While North African countries and others like Ghana, Gabon, and South Africa have made progress, UNSDG says Central Africa and the Sahel still lag behind. It highlights that Burundi and South Sudan posted among the lowest electricity access levels in 2022.

Impact on the digital economy

Demand for digital services in Africa is booming, driven by mobile penetration, fintech innovation, and a young, connected population. Data centers are critical to this growth, supporting cloud storage, artificial intelligence, e-commerce, and e-government. Yet underdeveloped power infrastructure is a major barrier.

Africa, despite being one of the fastest-growing digital markets, accounts for less than 1% of global data center capacity. The African Data Centres Association estimates the continent needs at least 1,000 MW of new capacity across 700 facilities. Meeting this demand requires both digital infrastructure investment and resolution of the energy crisis, notes law firm Bracewell LLP, which advises global players in energy, finance, health, infrastructure, real estate, and technology.

CrossBoundary Energy, an investor in renewable energy projects, reports that 60% to 80% of telecom towers in sub-Saharan Africa suffer daily power cuts lasting 8 to 12 hours. This disrupts mobile and internet services and deepens the digital divide. Rural and poor urban areas, already marginalized, are most affected as they cannot afford generators or solar panels. Their limited access to electricity hinders online education, digital health services, and other opportunities.

According to Justice Tei Mensah, lead economist at the World Bank, electricity becomes a powerful driver of development when combined with infrastructure such as roads and digital connectivity. He says reliable power helps reduce gender inequality by enabling women and girls to seize new opportunities in business, education, and access to information. But Africa’s energy crisis threatens the digital economy and its role in development.

Initiatives to address the crisis

In April 2024, the World Bank Group and the African Development Bank launched Mission 300, a program to bring electricity to at least 300 million Africans by 2030. A milestone came in January 2025 at the Africa Energy Summit in Dar es Salaam, when 12 countries signed electrification compacts outlining how each would accelerate access using least-cost national strategies. The World Bank Group also pledged to step up support, mobilizing $30 billion from IDA by 2030 and using innovative tools to attract private investment.

Alongside grid expansion, mini-grids are spreading rapidly as reliable alternatives. In its State of the Global Mini-Grids Market Report 2024, Sustainable Energy for All (SEforALL) said global commitments for mini-grid programs reached more than $3.1 billion, with 87%—about $2.7 billion—directed to Africa. Installations are now six times higher than in 2018. In sub-Saharan Africa, the number of connections almost doubled between 2019 and 2021, from 40,700 to over 78,000, despite the challenges of the Covid-19 pandemic.

Outlook

For Africa to unlock its digital potential, it must resolve its energy crisis. This calls for massive investment in energy infrastructure, stronger support for renewable projects, and policies ensuring equitable access. Coordinated efforts between governments, the private sector, and international partners are essential for an inclusive, sustainable digital economy.

The UN Conference on Trade and Development (UNCTAD) estimates that bridging Africa’s energy gap by 2030 will require $190 billion annually, about 6% of the continent’s GDP. Combined with reforms in the digital sector—including improved infrastructure, affordable smartphones, lower internet costs, and greater innovation funding—such efforts could unleash Africa’s digital economy.