The International Energy Agency’s Financing Electricity Access in Africa argues that universal electricity access requires a major increase in investment, better-designed financing, and targeted affordability support. Around 600 million Africans lacked electricity in 2024, and progress has barely kept pace with population growth.
The report’s principal findings and recommendations are:
- Investment must increase substantially. Its pathway to universal access by 2035 requires approximately US$150 billion, or US$15 billion annually: US$7 billion for grid expansion, US$5 billion for mini-grids, and US$3 billion for solar home systems. Tracked international public and private financing commitments were below US$2.5 billion in 2023.
- Public funding should mobilize more private capital. Private finance provided less than 30% of tracked flows in 2023; the proposed pathway raises private investment to slightly above 45%. Priorities include patient equity, guarantees, local-currency financing, clearer regulation, and grants that help smaller developers establish viable projects.
- Connections alone are insufficient. Approximately 220 million people currently without access would struggle to afford even basic electricity services. Closing this affordability gap requires at least US$2 billion annually beyond connection investment, including targeted consumer subsidies.
- Concessional finance must reach underserved communities. Scarce subsidized funding should prioritize low-income households, fragile states, displaced populations, early-stage businesses, and women-led enterprises. Supporting electricity use by businesses, farms, schools, and health facilities can also strengthen project revenues and development benefits.
The central policy implication is to combine integrated electrification planning with strategic public support and commercially sustainable delivery. Success should be assessed through affordable, reliable electricity use and economic opportunity, alongside the number of new connections.
