$13B in African Power Investment Is Waiting – Proven Sponsors Can Deliver

Africa’s power sector is drawing growing global capital attention, with investment reaching an estimated $13.84 billion in 2025 across energy deals – the vast majority in clean power, underscoring investor interest in the energy transition.

However, despite 74,000 MW of announced capacity, only about 14,500 MW has been realized, revealing a persistent “execution gap” between projects announced and projects delivered. This bankability gap remains one of the principal challenges for investors seeking real returns in Africa’s energy markets.

At its core, “bankable” means return structures and risk mitigation that satisfy institutional capital requirements – including stable revenue streams, enforceable contracts, experienced sponsors and financial structures that make projects credible to lenders. Investors are increasingly targeting deals with these features, and measurable success is emerging where project fundamentals align with global finance expectations.

The Bankability Imperative

Take South Africa as an example: a 300 MW solar + battery energy storage system (BESS) project recently reached FID as one of the country’s largest private utility scale solar-plus-storage deals. With 300 MW of solar co-located with 660 MWh of battery storage and backed by 25-year PPAs with Sasol and Air Liquide, the project illustrates how strong sponsor backing, firm offtake agreements and hybrid dispatchable design can attract financing, enable large-scale execution and build investor confidence.

While smaller in scale, Zambia’s Ilute Solar Project also reached financial close in early 2026. The 32 MWp solar plant – one of the first in the region financed through power sales into the Southern African Power Pool – secured capital on the strength of a market-based PPA with GreenCo Power Services and a layered debt structure that mitigates regional price risk. Led by Serengeti Energy, Kwama Energy and FMO, the deal integrated senior and subordinated financing tranches, with the latter providing flexibility to absorb potential market fluctuations.

Beyond utility-scale renewables, program-based and blended finance vehicles are increasingly being used to pool public, concessional and private capital to de-risk early-stage projects. For example, the Afrigreen Debt Impact Fund, which closed at N100 million last year, provides long-term financing for small- and midscale solar projects, illustrating the growing importance of tailored debt solutions to bridge finance gaps and unlock private-sector led deployment.