Green Energy Financing in Africa: Is Political Will Enough?

Ahead of AU Summit 2026 Dr Ojieh argues Africa’s green energy financing needs political will, regulatory coherence and scaled blended finance.

Atlantic Post

February 18, 2026

4–6 minutes

AU Summit 2026, Blended Finance, climate finance, Energy Transition, Green Energy Finance, Nigeria Energy Policy, political will, Renewable Energy Africa

Brief Report: Dr Charles Ojieh on Green Energy Financing in Africa

Dr Charles Ebinumolise Ojieh warns that as Africa gathers for the AU Summit 2026 the continent’s vast renewable potential risks being wasted without stronger political commitment and far greater finance.

In an op-ed he notes investment in renewables in sub-Saharan Africa climbed from about USD 7 billion in 2019 to roughly USD 16 billion in 2024 but stresses this remains a fraction of what is required. Trillions will be needed by 2030 to deliver a meaningful energy transition and climate resilience.

Dr Ojieh identifies political will as the central obstacle. Public finances are strained and private capital remains wary because of perceived instability, regulatory inconsistency and weak project bankability.

While multilateral actors and the African Development Bank have supported projects and project preparation, their contributions fall short of continental needs.

He highlights emerging domestic measures. These include Nigeria’s USD 2 billion National Climate Change Fund, a new Climate Investment Platform, and a USD 200 million renewable mini-grid initiative. They are positive but insufficient without stronger pipelines and credible risk mitigation.

The op-ed calls for coherent long-term policies, transparent regulation and inclusive governance to reduce perceived risk and unlock larger pools of capital.

Dr Ojieh concludes that Africa is ready for a green transition but that sustained leadership and disciplined implementation are essential to turn potential into measurable progress.

Below is the full draft of his full op-ed, which was originally published by the Vanguard Nigeria newspaper:

“Green energy financing in Africa and political will, are we ready or not?

Africa enters the 2026 African Union Summit at a defining moment. The continent holds extraordinary renewable energy potential, yet progress toward sustainable energy systems continues to be constrained by limited financing and uneven political commitment. Green energy financing has therefore moved beyond being a technical or economic concern. It is now a clear test of Africa’s readiness to pursue a sustainable and transformative future.

Africa’s renewable resources, including solar, wind, hydro, and geothermal energy, present a powerful opportunity to drive economic growth, industrialisation, and energy access. Investment in renewable energy across Sub-Saharan Africa increased from approximately USD 7 billion in 2019 to about USD 16 billion in 2024.

While this growth is encouraging, it remains far below what is required. Current estimates suggest that trillions of dollars will be needed by 2030 to support energy transition efforts and build climate resilience across the continent.

Although Africa has both ambition and natural endowment, capital availability remains insufficient. Public finances are under pressure, and private investors remain cautious, largely due to perceptions of political instability, regulatory inconsistency, and weak project fundamentals. Political will therefore sits at the heart of the financing challenge.

International financiers and multilateral development banks continue to play an important role. Institutions such as the African Development Bank have supported large-scale renewable infrastructure projects and strengthened project preparation efforts across several countries.

However, these contributions, while valuable, fall well short of Africa’s overall needs. Green bond markets across the continent remain shallow, risk-sharing mechanisms are underdeveloped, and many investors still view African energy projects as high-risk due to market volatility, infrastructure gaps, and regulatory uncertainty.

Several African governments have begun to introduce innovative financing measures. Nigeria’s USD 2 billion National Climate Change Fund and the recently launched Climate Investment Platform signal a growing domestic commitment to mobilising institutional and private capital.

However, such initiatives must be supported by strong project pipelines, improved bankability, and credible risk mitigation frameworks if financing is to scale meaningfully.

Despite ongoing reforms, Africa continues to attract only around 2 percent of global clean energy investment, despite accounting for nearly 20 percent of the world’s population.

Key barriers to scaling green energy financing include high perceived risk, where policy uncertainty and weak regulatory environments increase financing costs, often making them two to three times higher than in advanced economies.

Additionally, green finance markets are still nascent; while green bond issuances in countries such as Nigeria, Zambia, and Côte d’Ivoire are promising, the market remains limited in depth and liquidity.

Furthermore, restricted access to global climate funds, caused by lengthy approval processes and stringent eligibility requirements, limits the concessional finance needed to de-risk private investment.

Finally, infrastructure and project bankability constraints, such as weak grid infrastructure and limited project preparation capacity, continue to reduce investment readiness.

Nevertheless, positive momentum is evident. Nigeria’s recent USD 200 million renewable mini-grid initiative demonstrates how blended finance structures can expand rural electrification while attracting global capital.

Ultimately, political will remains the decisive factor. Countries that maintain stable, long-term policies and transparent regulatory environments consistently attract higher levels of investment. Where political leadership is inconsistent, reforms stall and investor confidence erodes.

Continental commitments, such as the USD 50 billion annual climate finance pledge announced at the Second Africa Climate Summit, reflect growing determination. However, these commitments must be matched by concrete policy actions, institutional reforms, and disciplined implementation.

For Africa to move from a narrative of climate aid to one of climate investment, leaders must strengthen regulatory coherence, improve transparency, and foster inclusive engagement with civil society, the private sector, and legislatures. Addressing governance weaknesses, improving coordination, and stabilising regulatory frameworks will reduce perceived risks and unlock larger pools of capital.

As the AU Summit 2026 convenes, Africa must consolidate its political commitment to a green energy future. The continent is ready. What remains essential is sustained leadership, credible reforms, and a unified resolve to translate potential into measurable progress.

Dr. Charles Ebinumolise Ojieh (Ph.D.) is a seasoned banker in Nigeria, currently undertaking a Senior Executive Leadership Programme at Saïd Business School, Oxford University, and a Green Energy Finance Expert with EDGE Finance.”