The global energy system is undergoing rapid change, influenced by environmental concerns, technological advances, shifting geopolitics and evolving consumer patterns. Fossil fuel dependency and centralised infrastructure are increasingly seen as unsustainable, while supply chain vulnerabilities, climate change and energy inequality add urgency to the search for alternatives.
Energy investment is projected to reach 3.3 trillion US dollars in 2025, with clean energy technologies attracting 2.2 trillion US dollars – double the investment in oil, gas and coal. While fossil fuels continue to supply around 80 percent of global primary energy, renewables are expanding, creating opportunities to balance decarbonisation with access, affordability and reliability.
Energy inequality in Africa
Despite being home to 20 percent of the world’s population, Africa receives just 3 percent of global energy investment. More than 600 million people still lack access to electricity and over 1 billion rely on unsafe fuels for cooking. This deficit affects education, healthcare and economic growth.
Yet the continent holds vast renewable resources, from solar corridors in the Sahel and wind-rich coastlines to emerging green hydrogen hubs in Namibia, South Africa, Egypt and Morocco. Natural gas is also proving to be a scalable transition fuel, offering immediate relief while renewable capacity grows.
Lessons from global shifts
The pace of the energy transition varies worldwide. Europe is accelerating renewables adoption, driven by geopolitical pressures and climate policies. China and India are investing heavily in solar power, hydrogen and electric transport, positioning themselves at the forefront of clean technology. These developments provide lessons and opportunities for collaboration as Africa defines its path.
For many developing regions, however, fossil fuels remain critical. In Africa, more than half of energy investment through 2025 is expected to go into hydrocarbons. Revenues from oil and gas remain vital for funding infrastructure, education and healthcare.
A phased and balanced transition
Africa’s transition must be pragmatic. Rapid withdrawal from fossil fuels could undermine development and worsen poverty. Instead, a phased approach is needed, one that draws value from existing resources while scaling up renewables and clean technologies. This aligns with the principle of a just transition, which recognises regional differences in capacity and starting points.
The continent has the potential not only to expand access to energy but also to become a major contributor to the global clean energy market. Solar power has become one of the most affordable energy sources, with costs falling by 90 percent in the past decade. Advances in battery storage are also making renewables more reliable, strengthening Africa’s ability to supply as well as consume clean energy.
Overcoming financial barriers
Funding remains a challenge. In 2025, debt servicing will absorb an estimated 85 percent of Africa’s energy investment, restricting the space for new projects. Addressing this requires concessionary financing, risk-sharing mechanisms and regulatory reform. Public and development finance institutions will need to take the lead, particularly in supporting access for underserved populations and emerging technologies.
Africa at the centre of global progress
The success of the global energy transition depends on inclusive participation. Africa cannot be expected to abandon resources that fuel its growth. Instead, the continent should be supported to adopt a balanced path that delivers reliable energy now and sustainable prosperity for the future.
The decisions made today will determine not only Africa’s trajectory but also the global ability to create a resilient, low-carbon energy system.