South Africa, Morocco, and Egypt, with a combined installed solar capacity of 8.6 GW in 2021, account for 65% of Africa’s total solar capacity.
This achievement is the result of substantial financial flows they have successfully attracted to develop their renewable energy sectors.
Concentration of Public Financial Flows
According to the International Energy Agency’s (IEA) Energy Progress Report, released in June, international public financial flows for renewable energy remain concentrated on a small group of countries. In 2021, 80% of public commitments were directed to just 19 countries and territories.
While this broadened slightly in 2022, with 25 countries receiving 80% of commitments, the figure remains below the average of 38 countries over the 2010-2022 period.
South Africa, Egypt, and Morocco Lead in Africa
Among these 38 countries, 12 are African, with South Africa, Egypt, and Morocco leading the way. These three countries alone have received a total of $17.3 billion in international public financial flows during this period. South Africa ranks fourth globally in attracting public funds, with $7.7 billion, followed by Egypt with $5.7 billion (9th) and Morocco with $5.6 billion (10th).
Confirmation of Long-Term Trends
The IEA report’s data confirms the trends in renewable energy project financing in Africa over the past decade. Research from ZeroCarbon Analytics reveals that South Africa received the highest amount of asset financing for renewables on the continent between 2010 and 2021, totaling $23 billion. Morocco secured $9.36 billion, while Egypt attracted $7.14 billion during the same period.
Solar and Wind Dominance
These substantial public and private investments have propelled South Africa, Morocco, and Egypt to the forefront of installed solar photovoltaic and wind energy capacity in Africa. This dominance is highlighted in the report “Solar and Wind Fuel Energy Security in Africa’s Green Transition,” published in late 2023.