Access to stable and affordable energy is undeniably one of the most crucial components of modern societies and the goal of sustainable economic growth via supporting critical production and information industries such as mining, manufacturing, agriculture, healthcare information and education, while improving the lives of billions of people.
Approximately 600 million people across the African continent, still have no access to reliable power, and while the continent contributes to the global need for energy, there has been a considerable shift in recent years to address these energy needs.
In PwC’s newly released Africa Energy Review 2024: Driving energy access through collaboration report, we take a closer look at some of the key developments influencing change across Africa’s energy landscape, assess the progress made towards a just energy transition, look at gas as the bridge to a greener future, and highlight the importance and power of multi-sector collaboration.
A View of Energy Generation in Africa Today
In 2023, clean energy generation capacity increased by 7.1%, fossil fuel generation by 0.1% and total generation increased by only 1.8%.
Andries Rossouw, PwC Africa Energy Utilities and Resources Leader, comments that “We anticipate that clean power generated in Africa will increase to 25% by 2025 as growth in solar, wind capacity and hydro generated power continues.
“While Africa has seen an overall increase in clean energy generating capacity, actual power generated in 2023 increased by less than 1% from the previous year.
According to the report overall power generation, over the last decade has increased by 12.5%, which is four times less than the increased capacity on the continent leaving a serious deficit of energy availability needed for economic growth.
The major contributing factors are:
- Ageing fossil fuel plants—particularly coal-fired power stations—with declining availability factors and
- Weather-dependent non-dispatchable solar PV and wind replacing that supply with lower efficiency factors.”
Energy Generation Outlook by Region
North Africa’s energy landscape is evolving with a strong oil and gas sector alongside a growing emphasis on renewable energy sources that include wind, solar and green hydrogen. Key players like Egypt, Algeria and Morocco are using their resource wealth to transition towards renewables while maintaining their positions as natural gas exporters.
In East Africa, countries like Kenya, Ethiopia and Tanzania are making strides in expanding renewable energy and improving rural electrification. With major projects like the Lake Turkana Wind Farm, Kenya has achieved over 75% electricity access and aims for 100% renewable generation by 2030.
Southern Africa has positioned itself as a leader in renewable energy development—particularly in solar and wind, with South Africa dominating the region’s investments. Namibia is focusing on renewable buildout to support green hydrogen production, capitalising on its abundant solar and wind resources, with its oil and gas finds likely to make it a new regional energy hub.
“Despite significant advancements across these regions, challenges remain in infrastructure and financing, underscoring the need for continued investment and collaboration to meet growing energy demands and a transition to sustainable energy systems,” says Pedro Omontuemhen, PwC Africa Oil and Gas Leader. “Several factors have caused the global energy landscape to shift dramatically in recent years—with the post-pandemic recovery, geopolitical tensions and climate challenges being among them—and these have made Africa’s energy poverty more poignant. However, we are seeing greater commitments to leveraging renewable energy resources more heavily globally and in Africa.”
Africa’s Energy Sector – Where to now?
The PWC report, highlights the need for investment in infrastructure and technology to enhance grid efficiency, energy storage and resilience. There is a strong push for greater collaboration across borders, public-private partnerships, and regulatory reforms which we know are crucial for attracting investment and fostering innovation.
“This way, large-scale projects like Morocco’s Noor Solar Complex and fostering energy security through competitive markets are possible,” says Julie Rosa, PwC South Africa Energy Utilities and Resources Associate Director.
Roelof van Huyssteen, PwC South Africa Energy Law and Strategy Senior Manager comments, “At the same time, we need to continue with the momentum we have gained on the renewable energy front, capitalising from the continent’s vast natural resources, which will help reduce our reliance on fossil fuels and promote sustainable growth.”
Technological advancements also play a crucial role in advancing Africa’s energy landscape. Examples include AI-driven energy management that enhances energy efficiency, reliability and access, paving the way for a resilient and sustainable energy future.
