A new report by the Global Energy Alliance for People and Planet (GEAPP) and the Lightrock Energy Access Platform (LEAP) has said universal energy access in Africa is achievable, but warned that fragmented delivery systems, poor risk allocation and the high cost of capital could slow progress toward electrification goals.
Report Launched at Africa Energy Forum 2026
The report, Structuring for the Last Mile: Financing the Next Era of African Electrification, launched at the Africa Energy Forum 2026 in Cape Town, outlines practical and bankable approaches to accelerate electricity access for more than 500 million people in sub-Saharan Africa who still lack reliable power. Supported by The Rockefeller Foundation, the study examines barriers to rural electrification and recommends stronger collaboration between governments, investors, operators and development partners to reduce financing costs and expand energy access.
$15 Billion Annual Investment Required
According to the report, achieving universal electricity access in sub-Saharan Africa by 2035 will require about $15 billion in annual investments. However, current funding levels remain below $2.5 billion annually. The report argues that existing electrification models are often fragmented, with private operators carrying demand, payment and currency risks that could be more effectively managed through government policies and risk-sharing mechanisms.
Key Recommendations for Electrification
It recommends adopting proven infrastructure financing models for distributed renewable energy projects to lower costs and improve project viability. Among its key recommendations are stronger public-private partnerships, improved alignment between donors and investors, long-term financing for energy infrastructure, and greater investment in operations and maintenance to ensure reliability beyond initial hardware deployment.
The study also highlights the importance of dedicated service territories for operators, noting that exclusive service areas combined with universal access obligations could improve economies of scale and make rural electrification more commercially sustainable. In addition, the report calls for expanded data collection to better understand electricity demand patterns, improve planning and support productive energy use in underserved communities.
Zambia Case Study
A featured case study from Zambia demonstrates how a pilot programme providing reliable electricity to remote communities could be delivered at an estimated cost of $42.50 per household annually. National expansion of the model would require less than $100 million per year, according to the report.
Stakeholder Perspectives
Vice President for Africa at GEAPP, Carol Koech, said recent gains in electricity access across the continent show what can be achieved through collaboration. “This week, Mission 300 announced that 55 million people have gained access to electricity across Africa, demonstrating what is possible when governments, development partners, philanthropies and the private sector work together,” she said. Koech, however, noted that population growth continues to outpace new electricity connections in many countries, making it necessary to accelerate investments and improve financing structures.
Mission 300, led by the World Bank and the African Development Bank with support from GEAPP, The Rockefeller Foundation and Sustainable Energy for All (SEforALL), aims to connect 300 million Africans to electricity by 2030.
Hanaan Marwah, Executive Director of LEAP, said electrification efforts must go beyond simply providing connections to ensuring affordable and sustainable electricity use over the long term. She said reducing market fragmentation, improving risk allocation and deploying proven financing models could help accelerate universal energy access while delivering wider benefits across healthcare, education, security and economic development.
Vice President of Power at The Rockefeller Foundation, Cassady Walters, urged policymakers and investors to focus on long-term energy outcomes rather than technology preferences. He said paying operators for reliable service delivery, rather than solely for infrastructure deployment, and creating effective risk-sharing frameworks would help attract larger volumes of capital at lower costs and expand electricity access more rapidly across underserved communities.
Conclusion
The report concludes that while significant progress has been made in recent years, achieving universal energy access across Africa will require coordinated action, innovative financing structures and stronger partnerships to bridge the continent’s electricity gap.
