Unlocking Africa’s Green Energy Future: Financing the Energy Transition at IAE 2025
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Africa's energy demand is projected to nearly double by 2040, driven by rapid population growth and urbanization. To meet this surge sustainably, the continent must harness its vast renewable energy potential, estimated at 10 terawatts (TW) of solar capacity alone, according to Vanessa Baldwin, CEO, Cata Energy, who spoke at Invest in African Energy (IAE) 2025.
These critical issues were at the forefront of the Financing the Transition: Unlocking Private Capital for Sustainable Development panel. Moderated by Tania Imani, Founder, Nonzero Africa, the session convened industry leaders to discuss strategies for mobilizing private investment in Africa's renewable energy sector.
"Creating confidence is key for investors, so they don’t have to take the risk," Baldwin said, and pointed out the high cost of electricity across the continent, stating, "The cost of electricity is very high, and it has to change." She called for policy reforms to harmonize tariffs and make energy more affordable.
The need for substantial investment in physical infrastructure was a key discussion topic on the panel. "We need to invest in physical infrastructure; that requires $30 billion investment to generate power to cover Africa," said Amine Idriss, Director of Infrastructure, AUDA-NEPAD, highlighting the progress in regional power integration. "Southern Africa is already trading electricity. By 2030, we hope that at least three regions will be trading electricity." Idriss also underscored the goal of achieving 60% renewable energy in Africa's power mix by 2040, emphasizing the importance of ensuring access for rural populations.
Meanwhile, Ditshego Tsebe, National Technical Expert, UNIDO, addressed the complexity of Africa's regulatory landscape: "Africa doesn't speak with one voice; trying to do business in that continent with all the different governments and regulatory spaces for energy is complicated." She advocated for harmonizing regulations to ease the investment process and highlighted UNIDO's role in providing technical expertise, even when direct funding is not available.
Brian Mosehla, CEO, Mosomo Investment Holdings, pointed out Africa's lag in the global energy transition: "Africa is way behind the rest of the world." He stressed the need for certainty to attract capital: "The capital market wants some elements of certainty." Mosehla proposed creating a fund to finance the transition, suggesting, "You have to build something big to give it to small businesses." He also highlighted the continent's rich mineral resources as a foundation for new businesses and unlocking private capital.
Humphrey Asiimwe, CEO, Uganda Chamber of Mines and Petroleum, shared Uganda's ambitious energy plans: "Our plan is to generate 52,000 MW of power." He emphasized the role of oil and gas revenue in funding the transition and the importance of regional power integration through the East Africa Power Pool. Asiimwe also noted the incentives Uganda has put in place for investors and the need to streamline licensing processes to attract more private investment.