Africa attracted $13.84 billion in energy transition investment in 2025, driven overwhelmingly by clean energy projects, according to a report released on Feb. 17 by Electron Intelligence.
The study, titled Africa’s Power and Energy Transition Investment Report 2025, said the funding was spread across 306 transactions led by 142 investors in 43 countries, underscoring growing momentum behind the continent’s shift toward renewable energy.
Clean energy projects accounted for $13.61 billion, or 98.3% of total investment, with power generation absorbing the largest share at $8.14 billion, followed by sector reform and public utility strengthening at $2.40 billion.
Transmission and distribution infrastructure drew $1.55 billion, while storage and grid flexibility projects secured $666 million, reflecting rising attention to grid stability and integration challenges.
Debt financing dominated capital flows at $9.05 billion, while equity investments reached $2.48 billion; grants, guarantees and blended finance made up the remainder, and 15 mergers and acquisitions were recorded at a combined $1.4 billion.
The report said project bankability including credible power purchase agreements, balanced risk allocation and guaranteed grid access remained the decisive factor shaping investor appetite.
Among the leading financiers were the African Development Bank with $1.77 billion and the World Bank Group with $1.04 billion, alongside South Africa’s Standard Bank and the European Union.
The top ten investors accounted for more than half of total flows, channeling $7.42 billion across 112 transactions in 34 countries.
Geographically, investment was concentrated in a handful of large markets, with South Africa leading at $2.16 billion, followed by Egypt, Nigeria and Morocco, as ten countries captured nearly three-quarters of total value.
By subregion, West Africa drew the most capital at $3.91 billion, ahead of North and Southern Africa, as policymakers seek to scale renewable capacity and modernise grids to meet rising demand and climate goals.