The report supports the G7’s Energy for Growth in Africa initiative and calls for a doubling of investment in clean energy

A newly released report from the International Energy Agency (IEA) highlights the critical need for significant investment in clean energy projects across Africa to meet growing energy demand and achieve climate goals. The report, titled “Clean Energy Investments for Development in Africa”, is part of a flagship initiative launched by the Italian G7 Presidency, known as Energy for Growth in Africa. This initiative aims to facilitate a robust pipeline of financially viable clean energy projects and improve access to finance, focusing on technical assistance and capacity building.

Africa, despite its vast energy resources, currently attracts only about 3% of global energy investment. About 600 million people on the continent have no access to electricity, and over 1 billion use traditional biomass for cooking. To address these challenges and meet the region’s energy needs, the IEA report calls for annual energy investments to more than double to more than $240 billion by 2030, of which about three-quarters will go to clean energy solutions.

Key investment areas identified in the report include improving access to energy, strengthening energy sector infrastructure, and supporting emerging industries such as key mineral production and clean energy technologies. The report also highlights the need to strengthen financing mechanisms adapted to the African context, where perceived risks and costs of external financing remain high compared to other regions.

Concessional finance is highlighted as key to attracting private sector investment, with IEA analysis showing that Africa needs around $30 billion a year in concessional finance by 2030. This support is essential to unlocking the significant increase in private sector investment needed to achieving sustainable energy development goals.

Fatih Birol, Executive Director of the IEA, stressed the urgent need to address energy inequality in Africa, describing the current situation as a profound injustice. He expressed optimism that increased investment in impactful projects could quickly transform the landscape. Birol welcomed the importance of this issue on the G7 agenda and reaffirmed the IEA’s commitment to working closely with African partners to translate commitments into tangible action under the Energy for Growth in Africa initiative.

The IEA has a long-standing commitment to Africa’s energy and climate sectors, working closely with several African countries and organizing initiatives such as the recent Clean Cooking Summit, which aimed to mobilize resources for clean cooking solutions.

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