AFC: Africa should add 16GW of energy yearly to keep away from vitality disaster by 2050
Africa should add at the least 16 gigawatts (GW) of recent grid-connected technology capability every year till 2050 and make investments between $3.2 billion and $4.3 billion yearly in transmission infrastructure to satisfy even its most simple development targets.
This disclosure was made within the Africa Finance Company’s (AFC) newly-released report “State of Africa’s Infrastructure Report 2025”.
In line with the AFC, “To satisfy such transmission wants, Africa would require at the least $3.2–4.3 billion yearly by 2040.”
The organisation acknowledged additional, “To satisfy its most simple vitality wants, Africa ought to intention for at the least 16 GW yearly till 2050. Contemplating inhabitants development, such capability addition would carry common technology capability to 0.300 MW per thousand capita, at par with ranges seen in India and Indonesia as we speak.”
The Company additionally famous that this growth, regardless of its grim image, gives “huge funding alternatives throughout photo voltaic PV, gas-to-power, hydropower, battery storage, and grid modernization” for traders.
The AFC acknowledged that with the proper investments and reforms, Africa can construct the world’s most dynamic, built-in, and future-ready vitality system, powering development for the subsequent technology.
Africa urged to emulate Latin America’s mannequin for attracting personal sector funding
In line with the AFC, the teachings from Latin America could provide a method ahead. The organisation acknowledged that for the reason that Nineties, international locations equivalent to Brazil have opened transmission to the personal sector by aggressive auctions and unbiased energy transmission (IPT) fashions.
“Brazil’s grid has grown from 105,000 km in 2012 to 184,000 km in 2023, with 86,000 km of recent traces auctioned over the previous 16 years. In 2024 alone, Brazil’s first transmission tender attracted $3.65 billion—equal to Africa’s annual transmission funding want,” AFC famous.
In line with the AFC, “Brazil’s expertise demonstrates that making a viable funding pipeline— anchored in regulatory reform, unbundled utilities, and long-term planning—is crucial to crowd in personal capital at scale”.
What this implies for Nigeria
For Nigeria to satisfy its personal vitality calls for and help sustainable {economic} development, it should align with the continental goal of including at the least 16 GW of grid-connected technology capability yearly till 2050.
As Africa’s largest financial system, Nigeria might be central to reaching this continental milestone.
At present grappling with persistent energy shortages, unreliable grid infrastructure, and a heavy reliance on diesel turbines, Nigeria should considerably ramp up each its technology and transmission capability.
In November 2024, the Federal Authorities stated Nigeria wants $10 billion in personal funding within the energy sector over the subsequent 5 to 10 years to attain a 24-hour energy provide.
Extra just lately, in April 2025, in April, Minister of Energy, Chief Adebayo Adelabu, disclosed that roughly 150 million Nigerians now have entry to ample electrical energy, whereas 80 million nonetheless lack dependable energy.
Adelabu acknowledged that the progress stems from Nigeria’s participation within the “Mission 300” initiative—an formidable joint effort by the World {Bank} and the African Improvement {Bank} (AfDB) geared toward offering electrical energy entry to 300 million Africans by 2030.
