Africa has abundance of various natural resources and is rapidly tapping into this to expand its energy capabilities to meet both local and global demands whilst driving the economic growth of individual countries.

According to a report titled, Mega Trends in Africa by Frost & Sullivan, Africa’s energy demand will grow to 1080.8 MTOE by 2025, doubling the current demand. The bulk consumers of this energy will be the mining and minerals industry.

Africa is an opportune market for renewable energy and is projected to grow from its current nascent stage to an emerging renewable energy hub. This will be built on Africa’s abundance of solar, wind and geothermal resources and its experience with off-the-grid solar solutions. 

For instance, Kenya sources 13% of its power from geothermal while 50% comes from hydroelectricity. Mozambique is one of the greenest countries in the world with 80% of its electricity coming from hydropower. 

One of the reason Africa is a promising green energy investment destination is due to the scalability provided by renewable energy technologies. With much of the population living in rural areas, the potential for off-grid energy sources is immense.

With the effects of climate change being felt on the continent, African governments are beginning to embrace clean energy with regulatory frameworks already put in place or being developed. This political goodwill offers investors the confidence they need to make long term investment decisions.

The demand and pivot to renewable energy presents a lucrative opportunity for investors as much of Africa’s resources remain largely untapped.