Financing the Energy Transition in Africa

There is a general agreement among global policymakers that Africa’s development is inextricably tied to the growth of the energy sector within the region. It is estimated that Africa requires between $35 billion and $50 billion per year in energy finance to reach the United Nations’ Sustainable Development Goal Seven. Currently, Africa attracts only three percent of global energy investment.

Energy transition financing is not a new topic. However, in discussions to date, Africa is often considered a single entity. Countries rich in transition minerals and fossil fuels have specific profiles and face unique challenges and opportunities. On one hand, nations like Senegal, Nigeria, Ghana, and Uganda might see their fossil fuel projects jeopardized or slowed by the transition. This dependence on revenues from fossil fuels can influence policy decisions and financial flows, diverting potential investments away from renewable energy projects.

On the other hand, countries such as the DRC, Zambia, and Guinea could benefit from increased revenues due to their mineral wealth. These minerals needed for the energy transition provide one pathway for these countries to finance their transition.

This closed-door policy dialogue aims to bring a diverse stakeholder to reflect on the challenges, opportunities and mechanisms for financing the transition in Africa in oil, gas and mineral-producing countries. It will serve as a critical platform for stakeholders to discuss innovative financing solutions that can support sustainable (economically, financially, socially and environmentally) energy projects to reduce energy poverty across the continent.

Remarks by NRGI Africa director Nafi Chinery

Ladies and gentlemen, it is a pleasure to welcome you to this critical dialogue on “Financing Energy Transition in Africa.” This is the first of a policy dialogue series that NRGI is organizing to shape narratives and policies for financing the energy transition on the continent.

We are at a critical juncture where Africa’s energy demands continue to grow alongside the global imperative for sustainable and equitable development. Africa holds vast energy potential—abundant natural gas, mineral wealth, and some of the world’s richest solar and wind resources. Yet, with only 3 percent of global energy investment, we are far from realizing this potential to meet our needs.

We must face crucial structural challenges head-on, such as inequitable risk assessments, high capital costs, insufficient regulatory support, and the hurdles of underdeveloped financial markets.

We know that without an inclusive approach, our countries, whether oil and gas producers or rich in transition minerals, will face even greater obstacles in harnessing their resources for both economic resilience and environmental stewardship.  

Driving sustainable energy solutions for our continent is a task that requires innovative financing, fair partnerships, and a commitment to Africa’s unique context and ambitions. As the energy transition accelerates globally, Africa’s pathway must be shaped not by external prescriptions but by our own priorities: powering growth, reducing poverty, and building resilience.

Together, we can interrogate and redefine how financing mechanisms support African countries—whether fossil fuel producers seeking transition paths or mineral-rich nations poised to fuel a greener future. We must continue to explore regional solutions, share lessons, and forge alliances that ensure the energy transition is both equitable and effective.

This is the beginning of exploring how to transform financing structures to reflect Africa’s realities and amplify African voices in global forums. It’s about ensuring that as we transition, we prioritize energy access, economic empowerment, and the environmental future of Africa’s people.