A woman carries firewwood in Malawi. Wil Punt via iStock
Energy

Africa’s energy transition gathers pace but remains uneven, with renewables leading fragile gains toward universal access

Renewable energy expansion accelerates but modern share remains marginal

Puja Das

Africa’s transition toward sustainable energy is advancing, led by gradual expansion in renewable energy, but the shift remains structurally weak and uneven, according to the Africa Sustainable Development Goal 7 (SDG7) Report 2025 prepared by the African Energy Commission (AFREC).

Renewable energy accounts for about 69 per cent of total final energy consumption across the continent, a figure that appears strong but is largely driven by traditional biomass such as wood and charcoal rather than modern clean energy systems. Modern renewables, including solar, wind, hydropower and geothermal, contribute only 2-3 per cent of total consumption, highlighting a major structural gap in Africa’s energy transition.

The report identifies countries such as Namibia, Morocco and Angola as leaders in scaling modern renewable capacity, supported by policy frameworks and targeted investments. However, weak investment flows, underdeveloped infrastructure and regulatory barriers continue to constrain large-scale deployment across most regions.

According to Rashid Ali Abdallah, executive director of AFREC, the continent possesses “abundant energy resources” and the capacity to leapfrog legacy energy systems, but over 500 million people still lack access to electricity, and nearly 900 million rely on polluting traditional biomass for cooking. Hence, it requires stronger partnerships, financing alignment and policy coherence to unlock this potential.

Parallel data from AFREC’s Key Africa Energy Statistics 2025 show that while solar and wind are emerging, Africa’s overall energy supply remains dominated by biofuels and fossil fuels, with biomass alone accounting for about 40 per cent of total primary energy supply in 2023.

Electricity access improves but 563 million remain without power

Electricity access across Africa has improved significantly, rising to 61 per cent in 2023 from 51 per cent in 2017, reflecting steady expansion in grid and off-grid solutions.

Despite this progress, around 563 million people, primarily in rural and peri-urban areas, still lack access to electricity, underscoring the scale of the challenge.

Regional disparities remain stark. Northern Africa has achieved near-universal access at 98 per cent, while Central Africa lags far behind at just 28 per cent. Eastern and Western Africa have shown moderate progress, driven partly by decentralised renewable energy systems and innovative financing models.

Urban-rural inequality continues to define the access landscape. Urban electrification stands at about 82 per cent, compared to only 44 per cent in rural areas, reflecting infrastructure and cost barriers in remote regions.

The report highlights decentralised renewable energy systems, including off-grid solar and mini-grids, as critical tools for bridging this gap. These solutions are projected to deliver nearly half of the new connections required for universal access by 2030.

Clean cooking crisis persists with severe health impacts

Access to clean cooking remains the most critical and under-addressed component of Africa’s energy transition. Only 35 per cent of the population had access to clean cooking technologies in 2023, leaving more than 940 million people dependent on polluting fuels such as wood, charcoal and kerosene. This reliance contributes to nearly 500,000 premature deaths annually, disproportionately affecting women and children, according to the report.

While Northern Africa has nearly universal clean cooking access through policies promoting liquefied petroleum gas, progress in sub-Saharan Africa remains slow and uneven, with deep urban-rural disparities.

The report warns that without urgent intervention, more than one billion Africans could still lack access to clean cooking by 2030.

Energy efficiency gains remain far below required levels

Energy efficiency improvements across Africa have been modest, with energy intensity declining from 11.93 megajoules per United States dollar (MJ/USD) in 2010 to 11.58 MJ/USD in 2022. This translates to an annual improvement rate of less than 0.5 per cent, significantly below the 2-3 per cent required to meet SDG7 targets.

The report attributes slow progress to weak policy enforcement, limited institutional capacity and lack of incentives, despite significant opportunities to reduce energy consumption and emissions.

Fossil fuels and biomass continue to dominate energy systems

Despite progress in renewables, Africa’s energy system remains heavily reliant on fossil fuels and traditional biomass.

AFREC data show total primary energy supply increased by 38 per cent between 2010 and 2023, driven largely by oil, natural gas and biomass consumption.

Electricity generation has more than doubled over the same period, but fossil fuels still account for about 75 per cent of generation as of 2023, even as hydropower and emerging renewables expand their share.

Africa also remains a net exporter of crude oil and natural gas, while many countries depend on imports of refined petroleum products and electricity, reflecting structural imbalances in energy systems.

Financing gap threatens SDG7 targets

Financing remains one of the most significant barriers to achieving universal energy access. The report estimates that Africa requires approximately 50 billion United States dollars annually to achieve universal electricity access by 2030, along with an additional 4 billion dollars per year for clean cooking solutions.

Current financial flows fall far short of these requirements, with clean cooking particularly underfunded compared to electricity projects. While innovative models such as blended finance, concessional loans, climate bonds and pay-as-you-go systems are emerging, their scale remains insufficient to close the gap.

Data gaps and policy coordination remain critical challenges

The report identifies data gaps as a major constraint on effective policymaking and investment planning. Strengthening national energy data systems, improving statistical capacity and leveraging technologies such as geographic information systems and artificial intelligence are essential to support evidence-based decision-making.

It also emphasises the need for stronger coordination among governments, private sector actors, development partners and communities to accelerate progress.

Outlook: opportunity amid urgency

Africa’s energy transition stands at a critical juncture. While progress in renewable energy deployment and electricity access demonstrates momentum, it remains insufficient to meet the 2030 targets under Sustainable Development Goal 7.

The continent’s abundant renewable resources, growing population and increasing political commitment provide a strong foundation for transformation. However, achieving universal, sustainable energy access will require urgent, large-scale investment, policy reform and inclusive innovation.

As AFREC notes, without coordinated and ambitious action, millions will remain trapped in energy poverty, yet with the right interventions, Africa could emerge as a global leader in clean and inclusive energy systems.