Over 600 million Africans, 43% of the total population, lack access to electricity, creating significant obstacles to economic growth.
The just-concluded Mission 300 Africa Energy Summit has set a bold target to address this gap: delivering electricity to 300 million people by 2030. With several African heads of state committing to concrete reforms and over US$50bn in pledged support from global business leaders and institutional investors, this watershed moment presents an unprecedented opportunity for private capital to reshape Africa's energy landscape.
The scale of Africa's infrastructure challenge is stark. According to the World Bank, Sub-Saharan African countries currently invest only 3.5% of GDP in infrastructure annually, less than half the 7.1% needed to meet the Sustainable Development Goals. While the financing gap spans several sectors, transport infrastructure represents the largest shortfall at 73%, followed by energy (10%) and education (10%). This investment shortfall underscores the magnitude of the challenge, and the critical role private capital must play in bridging the gap, especially in energy where investors are already seizing the opportunity.
The private capital landscape: what the numbers tell us
Our research on Africa’s infrastructure landscape reveals that energy investments captured 41% of private capital deal volume and 57% of deal value in African infrastructure between 2012 and 2023. This surge has been particularly pronounced in sustainable infrastructure, where deal volume doubled from 66 (2012–2015) to 129 (2020–2023), with solar energy establishing clear leadership at 63% of sustainable infrastructure deal volume.
Furthermore, we are seeing more innovative financing models emerge to close the gap. Sub-Saharan Africa attracted 41% of global blended finance infrastructure deals between 2013–2022, demonstrating how catalytic capital can mobilise private investment. Yet with public sector financing still accounting for 95% of Africa's infrastructure funding, new mechanisms—including local currency financing solutions—must emerge to deepen private sector participation and de-risk investments.
African fund managers leading the way
Several Africa-focused fund managers have already demonstrated the opportunities in this sector. African Infrastructure Investment Managers (AIIM), ARM-Harith Infrastructure Investment and Metier have successfully developed transformative energy projects across the continent. Their experience, combined with Mission 300's emphasis on public-private collaboration, provides a blueprint for scaling investment.
Additionally, the National Energy Compacts presented at the summit incorporate key elements that will drive successful private investment. These country-specific roadmaps from 12 African nations target competitive energy infrastructure costs, distributed renewable solutions, and utility strengthening. Their frameworks create clear pathways for private sector participation while promoting regional power integration.
So, where do we go from here?
This is a pivotal time for private capital investors, and the key shifts compelled by the Africa Energy Summit signal unique opportunities in Africa’s energy sector – from policy reform and innovative financing structures to regional integration and the rise of renewables. The convergence of these factors creates a launchpad for long-term impact and sustainable growth.
The foundation is set—now is the time to scale solutions and accelerate energy access. To discuss these points and many more, join us at the 21st Annual AVCA Conference in Lagos, Nigeria from 28 April to 2 May.
