Africa’s renewable energy future depends on stronger institutions, markets and regulatory systems rather than technology alone, experts have warned.
The warning comes as clean energy reaches a major global milestone, with renewable sources accounting for 34 percent of global electricity generation in 2025, surpassing coal’s 33 percent share.
Experts say the next phase of the energy transition will require countries to address structural barriers, including weak market design, slow permitting processes, limited grid planning and regulatory uncertainty.
They argue that Africa’s challenge is no longer the availability of renewable resources or clean energy technologies, but the systems needed to transform those opportunities into bankable projects capable of delivering electricity at scale.
The issue is particularly urgent on a continent where about 600 million people remain without access to electricity.
Former New York City Mayor and United Nations Secretary-General’s Special Envoy on Climate Ambition and Solutions, Michael R. Bloomberg, said while announcing a new US$285 million initiative to support clean energy development in emerging economies that existing barriers must be removed as global energy demand rises.
The initiative will focus on strengthening regulatory capacity, technical expertise, market structures and energy institutions rather than directly financing individual solar or wind projects.
Experts say these areas are increasingly important for attracting private investment and ensuring renewable energy projects can connect to national grids.
Saliem Fakir, Executive Director of the African Climate Foundation, said Africa’s challenge is not a lack of renewable potential but the institutional capacity required to unlock it.
Industry leaders also noted that although renewable energy costs have fallen significantly, investor confidence continues to be affected by policy uncertainty, regulatory delays and limited planning capacity.
Wangari Muchiri, founder and chief executive of RE.Think Energy, said the next stage of Africa’s energy transition will depend on removing barriers that prevent clean energy projects from scaling quickly.
Analysts say strengthening institutions, improving regulatory frameworks and creating predictable investment environments will determine whether Africa can translate its vast renewable energy potential into reliable electricity access and economic growth.