For decades, Africa was known as the 'dark' continent with images of the continent at night highlighting that more than 95% of those living without reliable electricity are in sub-Saharan Africa and Asia.
That could change - and it could change soon - if governments in the sub-Saharan Africa region adapt their policies, regulations and governance relating to access to financial markets, with the International Renewable Energy Agency indicating that the region could meet up to 67% of its energy needs with renewable energy solutions.
Some countries are already making the shift, with Namibia already drawing more than 33% of its total energy supply from renewables, and Morocco drawing even more that that percentage from the Noor Quarzazate Solar Power Station - the world's largest of its kind. Others, like Egypt, Ethiopia, Kenya, and South Africa, have made firm commitments to expand their approach to renewable energy - with Egypt, South Africa, Kenya, Namibia and Ghana being responsible for the growth of 1.8W in solar installations over the last few years.
Indeed, South Africa recently announced opportunities for renewable energy independent power producers to bid to produce 2,600MW of energy, injecting R45 billion into the local economy.
Apart from environmental protection imperatives, the move to renewables makes sense for countries faced by economic constraints, with the cost of energy produced via photovoltaic cells now officially the cheapest form of electricity generation. This is after the costs for utility-scale photovoltaic installations fell by 82% between 2010 and 2019, with the costs of producing wind energy falling by as much as 60% over the same period.
This decline in costs is likely to see the continent's renewable energy mix shift from hydropower and thermal energy generation facilities, not least because evolutions in technology now make it possible to harness energy from the sun and wind.
However, even if costs have fallen, utility-scale renewable energy sites still require major capital outlay, and it's here that capital markets and financial institutions can contribute to creating an enabling environment for investment in renewable energy generation, once governments have created enabling regulatory environments for new technology and new solutions.
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