New data reveals a stark disparity in global renewable energy investment, with sub-Saharan Africa receiving just a tiny fraction of the record $2.4 trillion spent on clean energy transition in 2024.
Global Clean Energy Boom Bypasses Africa
The International Renewable Energy Agency (IRENA) and Climate Policy Initiative (CPI) released their Global Landscape of Energy Transition Finance 2025 report on Monday, showing that while worldwide investment in clean energy reached an unprecedented $2.4 trillion, sub-Saharan Africa accounted for only 2.3% of this massive total.
This translates to just $18 billion in renewable energy investment for the entire African continent in 2024, despite its vast potential in solar, wind, and geothermal resources. The situation presents particular challenges for oil-dependent economies like Nigeria, as clean energy investments have now surpassed fossil fuel spending globally.
Widening Global Inequality in Energy Transition
The data exposes a deepening divide between developed and developing economies in the race toward renewable energy. China alone attracted $352 billion - representing 44% of global clean energy investment. Advanced economies and China together accounted for approximately 90% of all transition finance.
Francesco La Camera, IRENA's Director-General, expressed concern that "the global transition is at risk of deepening inequality" and emphasized that "scaling finance for emerging and developing countries is essential to make the transition truly inclusive."
When broken down per person, the investment gap becomes even more alarming. Sub-Saharan Africa's renewable investment translates to just $15 in per-capita spending, the lowest globally. This compares to China's $248 per person and Europe's $137.
Sector-Specific Investment Trends and Challenges
The $2.4 trillion global energy transition spending represented a 20% increase compared to the 2022-2023 average, but the growth rate is slowing concerningly. Renewable investment grew by just 7.3% in 2024, down sharply from 32% in 2023, threatening global ambitions to triple renewable energy capacity by 2030.
Key sector performances included:
- Solar PV investment soared 49% to $554 billion
- Battery storage surged 73% to $54 billion
- Electric vehicle spending reached $763 billion
- Wind investment fell 10.5%
- Solar thermal collapsed by 32%
Africa faces structural financing challenges including high capital costs, debt constraints, underdeveloped financial markets, and limited domestic savings. Most financing that does reach the continent comes as debt at market rates, with grants making up less than 1% of global clean energy investment in 2023.
The report highlights the urgent need for oil-dependent African nations to accelerate their energy transition plans, as the global shift away from fossil fuels continues to gain momentum while largely bypassing the continent with the world's fastest-growing population and lowest electrification rates.
