Report Supports G7’s Energy For Growth Initiative In Africa, Calls For Doubling Clean Energy Investments

A newly released report from the International Energy Agency (IEA) underscores the critical need for substantial investments in clean energy projects across Africa to meet rising energy demands and achieve climate goals. Titled “Clean Energy Investment for Development in Africa,” the report aligns with a flagship initiative launched by Italy’s G7 Presidency, known as Energy for Growth in Africa. This initiative aims to facilitate a robust pipeline of financially viable clean energy projects and improve access to financing, focusing on technical assistance and capacity building.

Africa, despite its vast energy resources, currently attracts only about 3% of global energy investments. Approximately 600 million people in the continent lack access to electricity, while over 1 billion rely on traditional biomass for cooking. To address these challenges and meet the region’s energy needs, the IEA report calls for annual energy investments to more than double to over $240 billion by 2030, with about three-quarters directed towards clean energy solutions.

Key investment areas identified in the report include enhancing energy access, strengthening the power sector infrastructure, and supporting emerging industries such as critical minerals and clean energy technologies manufacturing. The report also emphasizes the necessity of boosting financing mechanisms tailored to the African context, where perceived risks and borrowing costs remain high compared to other regions.

Concessional finance is highlighted as crucial to attracting private sector investments, with the IEA analysis indicating that Africa requires approximately $30 billion annually in concessional finance until 2030. This support is essential to unlock the significant increase in private sector investments needed to achieve sustainable energy development goals.

Fatih Birol, Executive Director of the IEA, underscored the urgency of addressing energy access inequalities in Africa, describing the current situation as a profound injustice. He expressed optimism that increased investments in impactful projects could swiftly transform the landscape. Birol welcomed the prominence of this issue on the G7 agenda and reaffirmed the IEA’s commitment to working closely with African partners to translate commitments into tangible actions under the Energy for Growth in Africa initiative.

The IEA has a longstanding engagement in Africa’s energy and climate sectors, collaborating closely with several African countries and hosting initiatives like the recent Clean Cooking Summit aimed at mobilizing resources for clean cooking solutions.