The International Energy Agency (IEA) has forecasted a significant increase in energy investment across Africa in 2024, projecting $110 billion to be directed towards energy projects on the continent. This increase is seen as crucial for Africa’s transition to clean and sustainable energy. According to the IEA, Africa currently attracts only about 3% of global energy investment, despite the continent’s growing demand for energy. This new investment is aimed at addressing infrastructure gaps and expanding access to electricity, which remains a major issue, with about 600 million Africans lacking reliable energy access.
The $110 billion forecasted for 2024 is expected to support various energy initiatives, including renewable energy projects, with the goal of providing more sustainable and affordable energy solutions. The IEA emphasized the need to overcome financial barriers, such as the high cost of capital for energy projects in Africa, which can be up to three times higher than in developed economies. By reducing these barriers, the continent can attract more private investment and increase its clean energy output to meet the goals set by African governments.
The report underscores the importance of international partnerships, as well as local initiatives, to scale up investment in Africa’s energy sector, focusing on clean energy technologies and solutions that can drive sustainable development and reduce carbon emissions.
This initiative aligns with broader global efforts to combat climate change and secure a sustainable energy future for Africa
