The Increasing Demand for Renewable Energy in Africa

Africa is richly endowed with fossil-based and renewable energy sources.

The abundance of land, minerals, forests, rivers and lakes has molded how the continent has traditionally developed its power sources.

Africa is no longer just coveted for her gold, ivory, iron ore, aluminum, or diamonds. The continent also offers an abundance of solar, wind, hydro, biomass and geothermal power resource capabilities.

This is the primary reason why Africa has been the last frontier of many different global investment trends, particularly over the past 100 years.

It’s worth remembering that Africa is a continent made up of many sovereign countries with varying ambitions, visions and agendas. The recognised 54 countries are split into 5 major regions namely: Southern, Eastern, Western, Central and North Africa.

Each region has seen varying levels of growth in green power mainly because of the sources of investment, currency strength, foreign exchange policy and energy policy structures to mention a few.

As of 2024, Southern Africa leads renewable energy developments, particularly in South Africa, which remains a major investor in solar and wind projects, exemplified by initiatives like the Selemela solar park. West Africa has also seen significant growth, with countries such as Nigeria and Ghana increasingly adopting off-grid solar solutions. North Africa remains a key player, with substantial investments in solar and wind energy in countries like Egypt and Morocco. East Africa is catching up, with Kenya and Ethiopia leading in geothermal and wind energy projects. Meanwhile, Central Africa remains the least developed in terms of renewable energy infrastructure, though there are emerging projects aimed at improving energy access.

Undoubtedly, the emergence of China as a major investor in Africa and manufacturer of renewable technology has also influenced the speed and direction of the sector both for positive and negative reasons.

Growing Demand In Energy

Africa’s growing population, which is currently sitting at just under 1.4 Billion people, has shown a huge appetite for power, especially since incomes, lifestyles and economies are developing at a faster rate than ever before. 

Currently, only 48% of the continent has access to power compared to a global average of 90%. If that weren’t enough, the median age of the population across the 54 African countries is estimated to be approximately 20 years of age compared to Europe’s 43 years and America’s 38 years.

This means that the demand for technology, housing, schooling, manufacturing, mining, water, roads and civil infrastructure is at unprecedented levels due to the youthful and growing population.

This coupled with Africa’s incredibly favourable weather and vast amounts of untouched land makes for a beautiful opportunity for green energy to explode and make a huge impact. Deploying modern renewables to eliminate power shortages in rural areas presents opportunities for industrial growth and creates jobs across the continent. 

The current traditional electricity power mix is made up of conventional power sources like coal, hydro-power, diesel engine turbines and negligible amounts of Nuclear power.

Traditionally, national grids were only built to serve the major cities such as Cape Town, Abidjan, Lagos, Cairo and Nairobi. They catered to the colonial centers of power that were in Africa and very little thought was given to the rural population, which is the overwhelming majority of citizens. 

This rural population, primarily composed of farmers, herdsmen, and villagers, has traditionally relied on kerosene, wood, charcoal, and oil-based power sources. The high cost of extending power to these areas has historically outweighed their buying power, making them less attractive for electrification efforts at the time.

Emerging Opportunities

Fast forward a few decades, and we are witnessing a significant transformation in Africa’s power mix, driven by the rise of off-grid, microgrid, and utility-scale power investments.

There is a substantial ⁠influx of investors from Europe, Asia, and the Americas focusing on renewable energy projects, particularly targeting rural markets in Africa. This shift is largely due to the recognition that energy solutions must be tailored to local needs. Consequently, innovative models like the ⁠pay-as-you-go rental system for electricity have gained traction.

This system leverages three pillars that have fueled Africa’s growth over the past 25 years: mobile telephony, mobile money platforms, and the internet. Solar companies have heavily invested in solar kits, microgrid technology, and peer-to-peer rooftop setups, making renewable energy both affordable and efficient.

Recent government policies and political will have led to the development of comprehensive renewable energy policies across almost every African country. These policies integrate conventional and green energy sources, creating a robust framework for sustainable development.

Clear legislation and funding models have encouraged private and institutional investors to support a ⁠growing number of projects across various renewable energy sources, including solar, wind, hydro, biomass, tidal, and geothermal power.

International major players continue to establish physical offices across Africa, signalling a shift from one-off projects to a long-term commitment to ⁠developing Africa’s power sector. This commitment underscores a focus on sustainable growth and energy security for the continent.

Increasing Demand In Talent

In times past, businesses expanding into Africa would usually hire expats, bringing in engineers, technicians and managers from Europe to execute their projects. 

Since there was no appetite to create a local skill base or upskill locals, projects usually fell apart when expats returned home. Since leaving a long-term talent legacy is detrimental to Africa’s green energy success, we’re pleased to see an increase in educational institutions in Africa offering qualifications in renewable energy.

As recruiters, we have observed that this has already led to a significant increase in the amount of local African talent available. This is undoubtedly a key ingredient if Africa’s Green power capacity is to grow at the rate required to meet her needs and light up the continent. 

In conclusion, Africa stands at the cusp of a renewable energy revolution. With its abundant natural resources, youthful population, and increasing investments in green technology, the continent is poised to make significant strides in electrification. The positive impact of renewable energy is already evident, and the future looks even brighter as more projects come online, bringing sustainable power to millions.

To harness this potential and ensure your projects are staffed with the best talent, contact our recruitment experts today. We specialise in connecting you with skilled professionals who can drive your renewable energy initiatives forward. Let’s work together to power Africa’s future.