Africa’s energy expenditure in 2024 will reach $110 billion, with fossil fuel supply and power accounting for $70 billion, according to the International Energy Agency (IEA)’s World Energy Investment 2024 report.
The continent’s annual energy investments are equivalent to only 1.2% of the region’s GDP and insufficient to achieve 2030 universal energy access and climate-related goals, notes the IEA. Up to $200 billion in investment is required per annum through 2030 to satisfy the increasing energy demand driven by population growth.
“Energy access is among the top priorities in Africa, where 600 million people live without electricity and roughly 1 billion people lack access to clean cooking,” stated the IEA.
While fossil fuel investments dominate Africa’s spending on energy, low sovereign debt ratings – due to rising debt repayments – hinder the ability by African countries to secure international investment for renewable energy projects.
Africa must accelerate investments in grid modernization and expansion, increase grant funding for vulnerable households, and de-risk projects to attract and scale up renewable energy funding, according to the IEA.
