Achieving universal electricity access across Africa will require $150 billion by 2035, according to the International Energy Agency. The report warns that current funding commitments meet only 15% of the total need, calling for stronger private investment, regulatory reforms, and a focus on rural electrification.
IEA: current investments cover only 15% of Africa’s electricity needs
The goal of universal electricity access in Africa remains distant despite technological progress and rising investment. According to the new Financing Electricity Access in Africa report by the International Energy Agency (IEA), reaching the target by 2035 will require $150 billion, or about $15 billion per year. Yet, less than $2.5 billion has so far been committed to new connection projects, covering only 15% of the total requirement.
Limited commitment fails to close the energy gap
The report notes that progress in expanding electricity access across sub-Saharan Africa has nearly stalled. Around 600 million people still live without power. Despite macroeconomic challenges and declining development aid, the IEA maintains that universal electricity access in Africa is achievable through a targeted strategy. In 2023, over 70% of funding came from international public sources, while private investment accounted for less than 30%. To bridge the gap, the private share must rise to 45% within the next decade.
Private investment and regulatory reform as key drivers
Private capital will be essential to success. The IEA report calls for regulatory reforms that make it easier to participate in local energy projects. Integrating electrification plans into national rural development programs would boost demand and the economic sustainability of new infrastructure. The IEA also highlights the need for guarantee mechanisms and financing tools to attract private investors by reducing perceived risks. Suggested measures include targeted tax incentives and greater transparency in bidding processes.
A fairer distribution of funds and the rural challenge
Most funding currently targets urban areas, while 80% of the population without electricity lives in rural regions. Half of all financial flows are concentrated in just six countries. To correct this imbalance, the IEA recommends expanding decentralized systems such as mini-grids and solar home systems, which are vital for rural electrification. These solutions require smaller investments and shorter implementation times, making them well suited to isolated communities and fragile contexts like informal settlements and humanitarian crisis zones.
Concessional finance and venture capital: two levers for progress
According to the agency’s analysis, about 40% of total investment through 2035 must come from concessional finance. These resources are crucial for projects that fail to attract private capital, including those serving low-income communities or early-stage developments. The report also calls for a tenfold increase in venture capital for energy access projects, describing it as a decisive factor for accelerating sector growth. The IEA urges governments and multilateral institutions to focus on vulnerable areas by providing technical assistance and strengthening local skills.
The cost burden on households
Beyond infrastructure, affordability remains a pressing issue. The IEA estimates that about 220 million people, or 40% of those without electricity, cannot afford even a basic package of power services at current income levels. For an essential package, that number rises to 400 million. To overcome this obstacle, the report recommends temporary subsidies for vulnerable families and small developers, along with concessional capital to lower project financing costs. Only then can energy be not just available, but also accessible and inclusive.
A shared strategy for electricity access in Africa by 2035
According to the IEA, achieving universal electricity access in Africa will require a substantial increase in capital flows toward decentralized solutions. Currently, mini-grid and solar home projects receive less than 20% of total financing, even though they are the only viable option for more than half of rural communities. The IEA notes that connection costs for mini-grids have dropped by nearly 60% over the past decade, driven by falling solar panel and battery prices.
The economic potential is significant: every $1 million invested in these systems can generate up to 800 direct and indirect jobs and foster the creation of local microenterprises. The agency emphasizes the urgency of better coordination between national grids and off-grid solutions, promoting public–private partnerships that can deliver reliable, continuous electricity even to the most remote parts of the continent.
