Africa Trails as Global Clean Energy Investment Hits $2.2trn in 2025
Global clean energy investment is set to reach $2.2 trillion in 2025, twice the $1.1 trillion projected for oil, gas, and coal. Yet, Africa is lagging behind in the global energy transition, capturing only a fraction of the flow despite its vast potential and growing population.
According to the World Energy Investment 2025 report released this September by the International Energy Agency (IEA), overall global energy spending is projected to hit $3.3 trillion next year. Africa’s share will amount to just $105 billion, a mere 3 per cent of the global total, even though the continent is home to 20 per cent of the world’s population.
The report revealed that Africa’s energy funding will be almost evenly split, with 52 per cent channelled into fossil fuels and 48 per cent into clean energy. In contrast, the rest of the world is directing about two-thirds of its investments into low-carbon sources.
Over the past decade, Africa’s fossil fuel investments have fallen sharply from $125 billion to $54 billion, while clean energy segments have grown only modestly. Renewable investments rose from $11 billion to $21 billion, grids and storage from $12 billion to $14 billion, and energy efficiency from $5 billion to $14 billion. The modest gains have not offset the steep decline in fossil fuel capital.
The IEA blamed financial headwinds for the continent’s low share of global flows. Rising interest rates, weak currencies, and heavy debt burdens are eroding investor confidence. In 2025, debt service alone is expected to consume 85 per cent of Africa’s total energy investment, leaving little room for new projects.
Regional disparities also weigh heavily. South Africa and North Africa, with less than one-fifth of the continent’s population, attract over 45 per cent of total capital and account for more than 65 per cent of installed electricity capacity. Sub-Saharan Africa remains stuck at the back of the pack.
The IEA warned that while the world is accelerating its shift to renewables, Africa risks being left behind. “The global energy map is changing rapidly, but Africa’s pace is not enough to meet its population’s rising demand,” the report stated.
