Gulf nations scramble for a share of Africa's renewables

July 09, 2025

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The Arab Coordination Group (ACG), a collective of development finance institutions, has pledged $2 billion to support Mauritania's national development strategy for 2025–2030, with a large portion aimed at improving the country's electricity infrastructure. This adds to a growing list of investments in Africa by various oil-rich Arab countries.

  • In particular North African countries are receiving energy investments, with neighbouring Europe and Middle East nations seeking import alternatives for electricity.

  • In Mauritania, energy firms Chariot and Total Eren are developing a 10 GW green hydrogen project. 

  • Our take: Gulf nations are here for business, and African countries must be shrewd in their negotiations… Read more (2 min)

Utilities post record revenues after price hikes

Ghana’s power utility, Electricity Company of Ghana (ECG), generated approximately $155 million in revenue during the first six months of 2025. This represents a 36% increase compared to the same period in 2024. The revenue increase follows significant tariff hikes, including a 14% increase in May 2025 and a further 2% increase in July 2025.

  • ECG, like many African utilities, struggles to meet the country’s power demand. Ghana aims for a 90% national electrification rate by the end of 2025, yet power supply remains inconsistent and unreliable for many consumers. 

  • At the same time, renewable energy technologies are becoming far more affordable. Solar panel prices have fallen nearly fourfold in eight years.

  • Our take: The question now is whether utilities will reinvest cash to modernise grids and expand renewable energy capacity… Read more (2 min)

Grid infrastructure dominates investments in Africa's energy sector yet again. In June, $3.4 billion in funding went to the sector, accounting for over half of the total, extending its lead to a third consecutive month. This consistent focus reflects a continent-wide drive to strengthen and modernise electricity networks for the long overdue integration of renewables.

  • Grid infrastructure has been a major constraint in ensuring generated power is consumed, with some projects being completed ahead of schedule but lying idle due to a lack of transmission capacity.

  • With increased cross-country power interests and renewables adoption, building the necessary supporting infrastructure is crucial. For instance, DR Congo wants to tap into Angola's power surplus by constructing a 1,150 km interconnector costing $1.5 billion.

  • Our take: Africa's massive solar panel import volumes guarantee economies of scale for local manufacturing… Read more (2 min)

GameChange Solar wins a contract to supply solar trackers for the 1 GW Abydos II project in Egypt

 

Events

🗓️ Learn about boosting energy efficiency with MEPS & labels (Jul 15)

🗓️ Sign up for Ghana’s International Solar Alliance Regional Committee (Sep 2)

🗓️ Attend the upcoming Carbon Markets Summit (Oct 21)

Jobs

🛠️ Apply for SNV’s Project Manager & Technical Lead position (Kenya)

👷🏻‍♀️ Become Yellow Door Energy’s Engineering Manager (South Africa)

👨‍💻 Lead Husk Power System’s operational excellence activities (Nigeria)

Various 

🔋 South Africa’s Solarise completes and activates a 1.2MW irrigation project

💸 The Sokodé Solar PV Project in Togo receives backing from ATIDI's RLSF

🔌 CEI Africa gets $4.5 million for Productive Use of Energy solutions

Seen on LinkedIn 

Ignatius Maranga, Quality Engineer at Strathmore University, says, “Every solar panel installed today will become 20kg of toxic waste in 25 years. With Africa’s solar capacity doubling every 3 years, we’re heading for a 500,000-ton e-waste tsunami by 2030.”