Africa’s Energy Deals Reach $13.8B in 2025, Highlighting Need for Bankable Clean Energy Projects
Africa’s power sector is attracting increasing global investment, with energy deals estimated at $13.84 billion in 2025, driven largely by clean energy initiatives.
However, a significant gap persists between announced projects and those successfully delivered, raising concerns about execution and bankability across the continent.
According to Energy Capital & Power, around 74,000 megawatts (MW) of power capacity has been announced in Africa, yet only about 14,500 MW has been realised, highlighting a persistent “execution gap.”
Industry experts attribute the challenge to making projects “bankable,” meaning they meet investor requirements through stable revenue models, enforceable contracts, experienced sponsors, and robust financial structures.
Successful examples show that these fundamentals work. In South Africa, a 300 MW solar and battery energy storage project recently reached a final investment decision, supported by long-term power purchase agreements (PPAs) with major industrial customers.
This demonstrates 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 PPA with GreenCo Power Services and a structured financing model designed to mitigate regional market risks.
Led by Serengeti Energy, Kwama Energy, and FMO, the project illustrates how blended finance and layered debt structures can support energy development in emerging markets.
Beyond large-scale infrastructure, programme-based financing is gaining traction. Funds like the Afrigreen Debt Impact Fund help bridge funding gaps for small and medium scale solar projects through tailored debt solutions.
Experts stress that experienced developers, clear offtake arrangements, and innovative financing mechanisms are critical to converting Africa’s vast energy potential into operational capacity.
Attention now turns to the upcoming Invest in African Energy Forum 2026, scheduled for April 22–23 in Paris.
The forum will bring together policymakers, investors, and developers to explore viable energy opportunities and address challenges related to project structuring and risk management.
Closing Africa’s bankability gap requires more than capital it depends on strong partnerships, credible sponsors, and platforms that align investor expectations with on-the-ground realities.
Successfully delivering bankable projects will be essential to powering economic growth, creating jobs, and driving inclusive development across the continent.
