The Africa Market Outlook 2025 April Update explains how solar power and renewable energy are becoming more important across Africa and are shaping the continent’s energy markets in the mid-2020s. The report says Africa’s solar photovoltaic market is set for strong growth between 2025 and 2028. This growth is mainly supported by high solar potential, falling solar technology costs, and rising demand for reliable and clean electricity. Africa has some of the highest solar radiation levels in the world, yet it has historically installed only a small portion of global solar capacity. Today, governments, investors, and energy experts increasingly view solar power as a practical solution to expand electricity access and support long-term economic development.
In 2024, Africa added around 2.4 gigawatts of new solar capacity. This number is expected to rise sharply from 2025 onward as more countries increase their solar targets. By 2028, the continent could install an additional 23 gigawatts of solar capacity. While South Africa and Egypt remain leading solar markets, many new countries are now entering the solar space. The report notes that 18 African countries are expected to install at least 100 megawatts of new solar capacity in 2025, compared to just two countries in 2024. This shows that solar growth is spreading beyond a few large markets and becoming more widespread across the continent.
Solar energy is described as a major driver of economic and social change in Africa. It plays an important role in expanding electricity access, especially in rural and remote areas where extending traditional power grids is expensive and slow. Off-grid and mini-grid solar systems are growing quickly and are providing electricity to households, schools, health centers, and small businesses. Better access to power supports education, healthcare services, and income-generating activities, helping communities improve their quality of life. Solar power also supports Africa’s climate goals by reducing dependence on fossil fuels and lowering greenhouse gas emissions.
Despite the strong outlook, financing remains one of the biggest challenges. The cost of capital for solar projects in Africa is often three to seven times higher than in developed countries. Although Africa has huge renewable energy potential, it attracts only a small share of global investment. Currently, the continent receives about three percent of global energy investment and around two percent of global green investment. The report stresses that access to affordable finance, risk-sharing tools, and stronger private sector participation will be critical for scaling up solar power and achieving universal energy access.
The report also notes that Africa’s energy transition includes other power sources. Natural gas continues to play a role, with consumption expected to rise as countries develop LNG terminals and pipelines to meet industrial and electricity demand. Gas can help balance power systems when renewable energy supply fluctuates, but infrastructure gaps and financing issues slow progress. Hydropower development is also moving forward in several countries, with large projects expected to supply significant renewable electricity across .
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