Africa will require an estimated $150 billion in total investment to achieve universal access to electricity by 2035, according to a new report from the International Energy Agency (IEA) titled “Financing Electricity Access in Africa.” The report underscores a pressing need for both public and private sector collaboration to bridge the continent’s persistent energy gap.
The IEA projects that approximately $15 billion in annual funding will be necessary over the next decade to connect the 600 million Africans who currently live without electricity. This investment presents a major opportunity for financiers to support the continent’s sustainable growth and energy security.
According to the findings, around 45% of the required capital will need to come from private sector investors. The agency, therefore, calls for targeted policy and regulatory reforms to attract private funding and accelerate progress toward the 2035 goal.
The report also urges African governments to integrate electrification strategies into their national development and rural planning agendas. This is crucial because about 80% of those lacking electricity live in rural and hard-to-reach communities where grid expansion remains a challenge.
Additionally, the IEA recommends a tenfold increase in equity financing, an expansion of grant programs, and greater use of results-based financing mechanisms to stimulate energy investments. Such measures would help improve financial flows and ensure long-term project viability.
To make basic electricity services affordable, the report highlights the need for at least $2 billion in annual support. Currently, an estimated 220 million Africans cannot afford even a basic energy bundle, while nearly 400 million struggle to pay for essential electricity needs.
In summary, the IEA’s findings signal both an urgent challenge and a transformative opportunity for Africa’s energy sector. Achieving universal access by 2035 will depend on decisive policy reforms, robust private investment, and inclusive planning to ensure no community is left in the dark.