$13 Billion in Power Investment Awaits as Africa Seeks Bankable Energy Projects
Africa’s power sector is attracting growing global investor interest, with energy deals reaching an estimated $13.84 billion in 2025, largely driven by clean energy projects. However, a significant gap remains between announced projects and those successfully delivered, raising concerns about execution and bankability across the continent.
According to Energy Capital & Power, while approximately 74,000 megawatts (MW) of power capacity has been announced, only about 14,500 MW has been realised, highlighting a persistent “execution gap”.
Industry experts note that the challenge lies in making projects “bankable”, a term used to describe ventures that meet investor requirements through stable revenue models, enforceable contracts, experienced sponsors and strong financial structures.
Examples across the continent demonstrate that success is achievable where these fundamentals are in place. In South Africa, a 300 MW solar and battery energy storage project recently reached final investment decision, backed by long-term power purchase agreements with major industrial players.
The project underscores how strong partnerships and reliable offtake agreements can unlock large-scale financing.
Similarly, Zambia’s Ilute Solar Project achieved financial close in early 2026. The 32 MWp facility secured investment through a market-based power purchase agreement with GreenCo Power Services and a structured financing model designed to mitigate regional market risks.
The project, led by Serengeti Energy, Kwama Energy and FMO, demonstrates how blended finance and layered debt structures can support energy development in emerging markets.
Beyond large-scale infrastructure, programme-based financing models are also gaining traction. Funds such as the Afrigreen Debt Impact Fund are helping to bridge financing gaps by supporting small- and medium-scale solar projects through tailored debt solutions.
Stakeholders say experienced project developers, clear offtake arrangements and innovative financing mechanisms are critical to converting Africa’s vast energy potential into operational capacity.
Attention is now turning to the upcoming Invest in African Energy Forum 2026, scheduled for 22–23 April in Paris. The forum is expected to bring together policymakers, investors and developers to explore viable energy opportunities and address challenges related to project structuring and risk management.
Experts emphasise that closing Africa’s bankability gap will require more than capital alone. It will depend on strong partnerships, credible project sponsors and effective platforms that align investor expectations with on-the-ground realities.
As demand for reliable and sustainable energy grows, delivering bankable projects will be key to powering economic growth, creating jobs and advancing inclusive development across the continent.
