Africa’s Solar Paradox: 62% Of Energy Investments While Millions Languish Without Electricity

Why does the continent with the world’s highest solar radiation have only 0.7% of global solar capacity? Africa sits on a goldmine of sunlight – 660,000 to 730,000 TWh per year of solar potential – yet millions still cook by candlelight. Welcome to the great African energy paradox.

The numbers paint a picture that’s both promising and pathetic. Africa’s solar market is set to explode by 42% in 2025, with 18 countries planning to install at least 100 MW each. That’s up from just 2 countries in 2024. Progress, right? Sure, if you ignore the fact that Africa only gets 3% of global energy investment while needing $200 billion annually to achieve basic electricity access.

Here’s where it gets ridiculous. Capital costs for solar projects in Africa are 3 to 7 times higher than in developed countries. So the continent with the most sun pays the most for solar panels. Makes perfect sense. Despite possessing 60% of the world’s best solar resources, solar PV accounts for only 3% of Africa’s electricity generation. The African Continental Free Trade Area could change this by eliminating tariffs on solar equipment, finally making panels affordable where they’re needed most.

The continent with the most sun pays the most for solar panels.

Morocco, Egypt, and South Africa are hogging the spotlight. Egypt’s expanding to 4.6 GW by 2028, South Africa’s adding 4.3 GW by 2026, and Morocco’s hitting 2 GW by year’s end. The transition faces intermittency issues similar to other regions adopting renewables at scale.

Meanwhile, rural communities across the continent remain stuck in the dark ages – literally. Off-grid solutions that could help these forgotten millions? They’re facing “financing and logistical barriers.” Translation: nobody wants to fund them.

The African Development Bank threw $12.74 billion at energy investments between 2016 and 2025, connecting 28 million people. Sounds impressive until you remember that’s barely a dent in a continent of 1.4 billion.

Kenya’s doing something right, though. Over 90% of their electricity comes from renewables, attracting $1.4 billion in investments in 2022. But they’re the exception, not the rule.