Africa's Clean Energy Investment Doubles to $40 Billion

Africa is becoming one of the world's most exciting destinations for clean energy investment, with funding nearly doubling in just five years.

Private sector investments in African clean energy reached $40 billion in 2024, up from $17 billion in 2019. By August 2025, African startups had already raised $2.8 billion, matching the entire previous year in just eight months.

Solar power is leading the charge as the most affordable energy source across many African nations. Morocco secured a massive $6.4 billion deal in 2023 to build an electric vehicle battery manufacturing facility, while electric vehicle investments jumped eightfold since 2021 to nearly $70 million in 2023.

One of the continent's most ambitious projects is the Mphanda Nkuwa Hydroelectric Plant in Mozambique. Backed by $6 billion from the World Bank and developed by TotalEnergies, it's the largest hydroelectric project in southern Africa in 50 years and will help address chronic power shortages.

Green hydrogen is attracting unprecedented attention, with Mauritania announcing a $34 billion project that exceeds the country's entire annual GDP. Zimbabwe is also making moves in the green economy through lithium processing facilities, tapping into the critical minerals needed for batteries and renewable technology.

The growth isn't happening by accident. Innovative financing tools like green bonds and blended finance are making projects more attractive to investors by reducing risks and freeing up capital for new developments.

The Ripple Effect

This investment surge means more than just financial growth. Off-grid solar solutions are bringing electricity to communities that have never had reliable power, while new manufacturing facilities are creating thousands of jobs across the continent.

The building sector is embracing energy efficiency through green mortgages and creative payment plans that make sustainable living accessible. Local financial institutions are expanding green lending programs, helping small businesses and homeowners join the clean energy revolution.

Africa still faces challenges, including higher capital costs than other regions and currency volatility. However, targeted solutions like credit enhancements and local currency guarantees are proving effective at overcoming these barriers.

The continent is securing a growing share of global clean energy megaprojects, proving that Africa isn't just participating in the green economy revolution—it's helping lead it.