Global Solar Council: Financing Challenges Threaten Africa’s Solar Growth

The latest report from the Global Solar Council (GSC) highlights that while Africa’s solar PV capacity is expected to grow by 42% this year, financial barriers continue to hinder the full utilization of its abundant solar resources. In 2023, solar power accounted for just 3% of the continent’s electricity supply, falling far short of its potential.

The report projects that Africa could add up to 23GW of new solar capacity between 2025 and 2028. However, access to low-cost financing remains a critical challenge. In 2024, approximately 2.4GW of solar PV was installed across Africa, down from 3.07GW in 2023, reflecting a shift in market dynamics with notable growth in emerging markets.

South Africa remains the continent’s largest solar market, adding 1,108MW in 2024—a 33% decline from the previous year. Egypt followed with 700MW of new capacity, primarily from two large-scale utility projects. West Africa showed strong momentum, with Ghana quadrupling its total installed capacity by adding 94MW, while Burkina Faso’s market grew by 129% year-over-year. In Zambia, prolonged droughts affecting hydropower output spurred nearly a twofold increase in solar deployment, with 69MW of new installations.

The report identifies financing constraints as a key factor slowing solar expansion in Africa. The cost of capital in many African nations is three to seven times higher than in developed economies. While clean energy investments in Africa reached $40 billion in 2024, this accounted for only 3% of global investments—well below the $200 billion required annually to meet energy access and climate goals.