Staff Writer
A funding commitment of more than US$1.1 billion by the European Investment Bank is set to support renewable energy projects across Africa, but experts say it addresses only part of a wider electricity gap affecting millions.
More than 600 million people on the continent still lack access to electricity, a shortage that continues to limit basic services and economic activity.
Dr Tebogo Kupi from the Centre for Applied Radiation Science and Technology at North-West University said the investment is important but not enough on its own.
“This level of investment is important in catalysing renewable energy development, particularly in scalable projects, grid infrastructure and regional integration programmes. However, given the magnitude of Africa’s energy shortfall, it represents one component of a much broader solution,” he said.
He emphasised the need for a broader approach, encompassing international funding, policy reform, local innovation and a diverse range of energy sources.
Universities and research institutions are expected to support this through training, research and partnerships.
Kupi noted that limited electricity access affects various sectors.
“In healthcare, unreliable or unavailable power restricts the operation of medical equipment, vaccine storage and emergency services,” he said. “In education, it limits access to digital learning tools and study hours, while economically it slows industrial expansion and reduces employment opportunities, particularly in rural areas.”
The European Investment Bank’s funding forms part of a wider global effort to support Africa’s shift to renewable energy.
Kupi said the scale of investment must be seen within the broader funding needed to meet demand.
He said the transition to renewable energy is possible, supported by Africa’s natural resources, but challenges remain.
“The transition is feasible, but it will require sustained investment, modernised infrastructure, energy storage solutions and strong policy alignment,” Kupi said.
“Renewables will play a central role, but a balanced and context-specific energy mix will remain necessary in the short to medium term.”
He said policy and governance will play a key role in how investment translates into access. He pointed to the need for clear regulations, open procurement processes and improved utility performance.
“Strengthening institutional capacity and reducing bureaucratic barriers will be essential to ensure that funding delivers sustainable outcomes,” he said.
Kupi said local solutions are also important, especially in areas where grid expansion is slow.
“Decentralised systems such as mini-grids and off-grid solar solutions can have a transformative impact at the community level,” he said. “South Africa, with its relatively developed energy sector, is well positioned to support innovation, research and skills development in this space.”
He said the main challenge for African countries is to align funding with policy reform and local innovation to close the electricity gap.
