Universal access to electricity in Africa will require $150bn by 2035, according to the IEA. Current investments cover only 15% of real needs, leaving 600 million people without power, mostly in rural areas across sub-Saharan Africa.
Universal access to electricity in Africa remains a distant goal
Despite technological progress and rising interest in clean energy, universal access to electricity in Africa is still far from being achieved. According to the new International Energy Agency report, Financing Electricity Access in Africa, reaching this goal by 2035 will require investments of $150bn, equal to $15bn per year.
At present, however, less than $2.5bn has been committed to new electricity connections, covering only around 15% of total financial needs.
Current efforts are insufficient to close Africa’s energy gap
The report highlights that progress in expanding electricity access in sub-Saharan Africa has almost stalled. Around 600 million people across the continent still live without access to electricity.
Despite ongoing macroeconomic pressures and declining development aid, the IEA argues that universal access to electricity in Africa remains achievable with a targeted and coordinated strategy. In 2023, more than 70% of total funding came from international public finance, while private sector investment accounted for less than 30%. To bridge the gap, private capital will need to rise to around 45% over the next decade.
Why private investment and regulatory reform are critical
Private sector engagement will be decisive. The IEA calls for regulatory reforms that make it easier for investors to participate in local energy projects, particularly in emerging markets across Africa.
Integrating electrification plans into national rural development strategies would help stimulate demand and improve the long-term financial viability of energy infrastructure. The report also stresses the importance of concessional finance, highlighting the need for guarantee mechanisms and risk mitigation tools to attract private capital. Proposed measures include targeted tax incentives and greater transparency in procurement and project allocation processes.
Rural areas remain underfunded
Most existing funding is concentrated in urban areas, even though nearly 80% of people without electricity live in rural communities. In addition, half of all financial flows are directed to just six countries, leaving many regions behind.
To address this imbalance, the IEA recommends scaling up decentralised solutions such as mini-grids and solar home systems, which are essential for rural electrification in Africa. These systems require lower upfront investment, can be deployed more quickly and are better suited to remote communities, informal settlements and fragile contexts, including countries affected by humanitarian crises.
Concessional finance and risk capital as key enablers
The analysis shows that around 40% of total investment needed by 2035 will have to come from concessional finance. These resources are crucial for projects that struggle to attract private capital, particularly those serving low-income communities or early-stage developments.
The report also calls for a tenfold increase in risk capital for electricity access projects, identifying it as a key driver of sector growth. Governments and multilateral institutions are urged to focus on the most vulnerable regions, while strengthening local skills through technical assistance and capacity building.
Affordability remains a major barrier for households
Beyond infrastructure, affordability remains a critical challenge. The IEA estimates that around 220 million people, roughly 40% of those currently without electricity, would be unable to afford even a basic electricity service package at current income levels. For a minimum essential package, the figure rises to 400 million people.
To overcome this barrier, the report recommends temporary subsidies for vulnerable households and small developers, alongside the use of concessional capital to reduce financing costs. Only through these measures can electricity become not just available, but also affordable and inclusive.
A shared pathway to universal access to electricity in Africa by 2035
According to the IEA, achieving universal access to electricity in Africa will require a significant increase in capital flows towards decentralised solutions. Today, mini-grids and solar home systems receive less than 20% of total financing, despite being the only viable option for more than half of rural communities.
The agency notes that connection costs for mini-grids have fallen by nearly 60% over the past decade, driven by declining prices for solar panels and batteries. The economic potential is substantial: every million dollars invested in these systems can generate up to 800 direct and indirect jobs and support the growth of local micro-enterprises.
Finally, the IEA underlines the urgency of improving integrated planning between national grids and off-grid solutions. Public-private partnerships will be essential to ensure reliable and continuous electricity supply, even in the most remote areas of the African continent.
