Open edition
The African continent is at a crucial turning point marked by a dual imperative that will shape its economic development for decades to come: achieving universal energy access (SDG7) by 2030 while orchestrating a rapid, inclusive green industrial transformation. Success in this decade depends on overcoming the glaring “paradox of abundance” and the so-called “resource curse.” Africa has extraordinary resources – an estimated 60% of the world's best solar resources, a massive 300 GW of untapped hydropower potential (of which only 11% is being used), and vast deposits of critical minerals essential to the global transition to clean energy. Yet over 600 million people still lack access to electricity and the continent currently attracts less than 2% of global clean energy investment. This stark mismatch, coupled with low manufacturing value added (MVA) to GDP and a negative manufacturing trade balance, confirms that the main obstacles to Africa's path to universal access and green industrialization are not geological or technological in nature, but are systemic in nature.
Africa's long-term success lies in building the institutional structures required for a unified African energy market. This fundamental vision is based on the African Single Electricity Market (AfSEM) and its technical blueprint, the Continental Power System Masterplan (CMP). Both are flagship projects of the AU Agenda 2063. This article describes the ways in which Africa can seize this moment and argues for a renewed green partnership on par with Europe to unlock both energy access and industrial power.
Bridging the access gap with decentralized solutions
For Africa to achieve the ambitious SDG 7.1 target for universal access by 2030, the pace of progress must accelerate significantly. This urgency requires a strategic shift toward rapid, scalable solutions that can effectively outperform traditional grid-based development models in underserved regions.
Distributed renewable energy (DRE), which includes robust mini-grids and standalone solar systems, is widely seen as the fastest and most important route to closing the access gap. DRE technologies are groundbreaking, particularly for connecting communities in rural and remote areas where conventional grid expansion is either prohibitively expensive or technologically unviable in the short term. However, mass deployment of DRE is often stalled by deep regulatory fragmentation and complexity.
Under the umbrella of the African Single Electricity Market (AfSEM), African institutions are actively standardizing regulatory best practices for mini-grids across the continent. This joint effort will focus on developing and validating guidelines – such as the African Model Mini-Grid Regulations Tool – that will help national regulators standardize complex licensing procedures, define cost-based tariffs and establish clear commercial rules for integration into the main grid. By improving and harmonizing these national frameworks, the regulatory risk will be drastically reduced. This is the essential first step in mobilizing the private capital needed for mass deployment of DRE and ensuring that millions of people who are currently unconnected have access to reliable energy.
Green industrial transformation
The second, non-negotiable path for Africa is to leverage its energy resources to achieve green industrial transformation and secure a central, high-value role in the global clean energy economy. This rests on three complementary pillars.
First, Africa must harness its extensive, low-cost renewable energy (solar, wind and hydropower) to stimulate industrial growth by creating competitive, energy-intensive manufacturing hubs. By strategically deploying utility-scale renewables and developing dedicated, high-capacity transmission corridors, African countries can guarantee the reliable and affordable electricity needed for large-scale industrial operations such as textiles, automobile assembly and chemical production. This approach transforms low-cost renewable energy from an environmental benefit into a direct economic benefit, allowing locally produced goods to compete with imports. This requires targeted public and private investments in grid modernization, digitalization (smart grids) and energy storage solutions to ensure that these nodes are supplied with the high-quality electricity needed for sustainable industrial production around the clock.
Second, the continent must aim to localize the clean energy supply chain by going beyond raw material extraction. By using low-cost renewable energy to process its critical minerals (CRMs) – such as cobalt, lithium and graphite – Africa can establish regional production hubs for components such as battery precursors, solar panels and wind turbine parts, meeting both growing domestic and intra-African demand under the AfCFTA. This strategy, highlighted in the African Green Minerals Strategy (AGMS), promotes economic diversification and ensures greater wealth preservation by converting mineral reserves into finished, value-added industrial goods.
Thirdly, Green Hydrogen (GH₂) and Power-to-X (PtX) technologies offer enormous opportunities, but only if they are anchored in Africa's development needs. For Africa, the goal must not only be to export green molecules, but also to use GH₂ as an important input for environmentally friendly industrial processes at home, such as the production of green iron and green steel from locally sourced minerals. This increases the export of raw materials into high value-added products, supports industrialization and ushers in a new era of resource-based development.
The Africa-EU Partnership: Mobilizing ambition for a green partnership of equals
The Africa-EU Energy Partnership (AEEP) and the EU's Global Gateway Strategy are important instruments for translating Africa's and Europe's shared energy ambitions into concrete measures. The Global Gateway has pledged around 150 billion euros for sustainable infrastructure in Africa. The Africa-EU Green Energy Initiative (AEGEI) aims to deliver at least 50 GW of new renewable electricity capacity by 2030 and ensure access for at least 100 million people.
EU support is crucial for both large-scale variable renewable energy (VRE) and distributed renewable energy (DRE). For AER, Global Gateway finances high-voltage transmission lines and cross-border connections (such as the Zambia-Tanzania Inter-Connector) that are essential to integrating large solar and wind projects. DRE directly targets rural electrification projects, including mini-grids and off-grid systems in countries such as Cameroon and Madagascar, which represent the fastest and most effective access routes.
However, for the partnership to be successful, it must move decisively beyond the traditional “donor-recipient” dynamic to a partnership of equals. This requires co-creation and shared (green) value chains that ensure mutual agenda setting and shared benefits. This means that European investment must not only provide opportunities for the European private sector, but also prioritize local processing and manufacturing in Africa. At the same time, African institutions must play an active role in setting the common strategic agenda, shaping financing and monitoring implementation.
In summary, the path to a prosperous, sustainable Africa lies directly through energy access and industrialization. The foundations, built on the AU's Agenda 2063 and flagships such as AfSEM and CMP, and strengthened by policy platforms such as AEEP and the financial strength of initiatives such as Global Gateway, are now firmly in place. However, the successful translation of political visions into a scalable infrastructure depends on the elimination of systemic structural weaknesses. By focusing on these issues, Africa and Europe can use their unique position to bridge the gap between continental ambitions and realities on the ground, ensuring that the next decade delivers universal energy access and a fair, green industrial future for both continents.
Author: Towela Nyirenda-Jere, Head of the Africa-EU Energy Partnership (AEEP) Secretariat.
Dr. Towela Nyirenda-Jere will be among the distinguished speakers at the Africa Energy Indaba 2026 – Africa’s leading energy conference and exhibition – taking place in Cape Town on March 3-5, 2026. Join policymakers, investors and innovators driving the continent's sustainable energy transition. Visit www.africaenergyindaba.com register.
Disclaimer: The articles and videos contained in this publication are those of the authors. They do not purport to reflect the opinions or views of Green Building Africa, our employees or our advertisers. The designations used in this publication and the presentation of the material contained therein do not constitute an expression of opinion by Green Building Africa regarding the legal status of any country, area or territory or its authorities.
Author: Bryan Gronendaal
Find out more: info@energyindaba.co.za | Inquiries: www.africaenergyindaba.com
