A report by the International Renewable Energy Agency (IRENA) and Climate Policy Initiative (CPI) has shown that renewable energy investment in Africa increased by just $4bn in sub-Saharan Africa between 2022 and 2024.
In the Global Landscape of Energy Transition Finance 2025 report reviewed by Bavijas, IRENA noted that renewable energy investments in Sub-Saharan Africa grew from $14bn to $18bn over the three-year period.
This small investment growth represents a 2.3% share of global renewable energy investments which reached a new record of $2.4tn in 2024.
IRENA noted that despite the slowing investment, countries in the Sub-Saharan African region plan to install at least 120GW of renewable energy capacity by 2035.
“Based on IRENA’s analysis of NDC targets submitted by countries in Sub-Saharan Africa, these countries plan to install at least 120GW of renewable energy capacity by 2035, of which 61% is conditional on international financial assistance, as well as technology transfer and capacity building,” the report reads in part.
To achieve this, IRENA proposes that at least $129bn will be required for renewable energy technologies alone, of which at least $77bn would come from international sources.
“Foreign direct investment, through joint ventures, technology partnerships and knowledge sharing, will be vital to strengthen international cooperation and expand energy transition manufacturing in emerging and developing economies, including through South-South collaboration,” IRENA said in a press statement.
Regional investment portfolios
While renewable energy investments grew across almost all regions between 2022/2023 and 2024, China remained the largest market for renewable energy investment.
China’s share of global investments slipped from 50% to 44% in the three year period between 2022, 2023 and 2024, but it continues to be the largest market for renewable energy.
Investments in China increased by just 6% between 2022/2023 and 2024 as rapid renewable expansion was hampered by limited transmission and distribution capacity.
In the same three year period, investments in Europe and in North America & Oceania grew by 22% and 34%, respectively, resulting in only a marginal change in their combined share of global investments, from 31% to 32%.
The rest of Asia’s (excluding China) share of global investments grew from 8% to 11.6% between 2022/2023 and 2024, reaching $93bn. This amounted to an increase of more than $40bn (or 77% growth rate).
Renewable energy investments in Latin America and the Caribbean grew by 18% between 2022/2023 and 2024, although the region’s share of global investments held steady, moving marginally from 5.6% to 5.4% driven almost entirely by small-scale solar.
In the Middle East and North Africa region, renewable energy investment grew by 62% in the three year period, from $13bn to $21bn. This represented 2.6% of total global investment flows in 2024, slightly up from 2% in 2022/2023.
The Eurasia region experienced a high growth in renewable energy investments between 2022/2023 and 2024, increasing by around 130% from $7.8bn to $17.9bn.