Africa Faces $120B Energy Investment Gap Amidst Vast Potential, Report Says

DUBAI, UAE – 25 JUNE, 2025-A new report highlights the stark energy divide in Africa, revealing that despite abundant renewable resources, the continent struggles with widespread energy poverty due to funding shortfalls, infrastructure deficits, and political hurdles.

The report, “Bridging Africa’s Energy Paradox,” released at Middle East Energy 2025, estimates a $120 billion annual investment gap needed to achieve universal electricity access by 2030. It cites low credit ratings, currency volatility, and unstable policies as key deterrents to investment.

“There has been very little investment for a very long time. To bridge the problem, we need massive investments,” said Norman Moyo, CEO of Grid Africa, in the report.

The study also points to inadequate infrastructure, especially in rural areas, and political interference in energy planning as major obstacles. Experts emphasize the need for innovative financing models, stronger institutions, and independent energy policies to unlock Africa’s potential.

The report underscores the urgency of addressing these systemic barriers through creative partnerships and financing structures, enabling Africa to leverage its natural wealth for economic growth and improved quality of life.

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