Funding cuts have not yet impacted AfDB energy spending

May 12, 2025

AfDB approves $30 million for Togo solar project

Togo has secured $30 million in funding from the African Development Bank (AfDB) for its 62 MW Sokodé solar plant. The project will cost $68 million and will be built through a public-private partnership. Proparco, the French development finance agency focused on private sector growth in emerging markets, will co-finance the project's development.

  • The country currently has an installed capacity of 134 MW of renewable energy from solar and hydropower. Last month, construction began on a 25 MW solar project as it moves to achieve its target of installing 200 MW of renewable energy by 2030.

  • Togo relies on electricity imports from Nigeria and Ghana to meet its 120 MW deficit. It plans to increase domestic electricity generation to reduce its reliance on imports from countries that equally face similar electricity supply shortages.

  • Our take: Togo needs to explore alternative options like providing incentives and subsidies to promote off-grid electrification efforts in the rural areas… Read more (2 min)

Renewable energy independent power producer, NOA Group, has reached financial close on its 94.5 MW wind project in South Africa. This is the second NOA project backed by Standard Bank, following the $272 million Ishwati Emoyeni Wind Farm, and is expected to generate 287 GWh of electricity annually and offset hundreds of thousands of CO2.

  • Only three African countries, Egypt, Morocco, and South Africa, have installed more than 2,000 MW of wind energy capacity. Despite Africa’s vast potential in wind, solar-led investments have saturated the market due to their competitive cost.

  • We are witnessing a shift from public to private procurement in South Africa’s renewable energy sector. The Wind Garden project is part of a larger trend where private off-taker agreements and independent power producers are increasingly leading renewable energy projects.

  • Our take: Are financial institutions in renewables finally banking on wind?... Read more (2 min)

The cost of solar panels in Nigeria, Kenya, Egypt, and South Africa remained unchanged in May, according to data collected by Renewables Rising. However, several policy developments in Kenya and South Africa are likely to affect future pricing. Kenya is proposing 16% VAT and South Africa a 10-30% import duty on products used in the renewables value chain.

  • Kenya is raising taxes to generate revenue for its cash-strapped government. South Africa is doing so to promote its growing local manufacturing of renewable energy products.

  • Nigerian solar panel prices have remained stable, even despite the government's controversial announcement that it is considering banning solar imports. This was later clarified by the Ministry of Energy, which stated that there is no such plan.

  • Our take: The proposed policy changes is a call to investors to focus on local renewable energy manufacturing… Read more (2 min)

Renewable energy company Migas launches the Jilore Biogas Project in Kenya

Events

🗓️ Register for the PPP for Critical Infrastructure Projects Training (May 16)

🗓️ Attend the Water Security Africa event (May 20)

🗓️ Sign up for a webinar on Solar Power Plant Design & Simulation (Jun 6)

Jobs

👩🏻‍💼 Join Nicholas O’Dwyer as a Deputy Team Lead (Ethiopia)

👔 Apply for Sun King’s Regional Collections Manager role (Togo)

🛒 Become Husk Power’s Procurement Manager (Nigeria)

Various 

💰 Egypt joins a $100 billion clean industrial initiative

⚡ Shoals, UGT, Sun Africa partner on 12 GW emerging market solar

💡 BioLite acquires Baobab+ to scale off-grid electrification

Seen on LinkedIn 

Ignatius Anayawa, CEO at GEI Power Limited, says, “Affordable energy is crucial for driving economic development, industrialisation, resilient farming, and effectively scaling up AI innovation!”