Expanding to the green energy industry? 4 African countries where the green energy industry is thriving

Even though the African continent is rich in fossil fuels, with leaders like Nigeria exporting a whopping 1.4 million barrels of crude oil per day, the continent is also brimming with renewable energy sources thanks to its abundant sun exposure, lakes, and rivers.

Besides, with the continent’s population set to boom to 2.5 billion people by 2050, it is vital that African countries find the means to increase access to electricity without the carbon footprint left behind by traditional energy sources.

Already, many African countries are pursuing greener energy sources. In East and Central Africa for instance, hydropower is the dominant source of clean energy, while in Southern Africa, other countries are blending solar into their grids. This presents a huge opportunity for investors to move into countries that are already familiar with the use of renewable energy, but where the electrification rate is still in the 20 to 50 percent range. This means that the market is actively in need of new players to help bridge the gap between Africa’s green energy potential and the actual electrification rate in the country.

To help you on your African journey, here are 4 African countries where the green energy industry is growing:

1.    Democratic Republic of Congo

In the Democratic Republic of the Congo (DRC), nearly all electricity is generated from hydropower, primarily sourced from the vast Congo River Basin. Despite having hydropower potential estimated at a whopping 100,000 MW (megawatts), making it the largest such source in Africa, only about 2.5% of this capacity has been developed to date. Naturally, this opens opportunities for investment and further development.

The DRC’s Inga dams have a combined output of 1,775 MW. They are the Democratic Republic of Congo’s key energy assets. Plans are underway for the construction of the Inga III dam, which would add an additional 4,400 MW. This new capacity is expected to support the energy-intensive mining sector and provide power to neighbouring countries.

The DRC’s long-term energy vision centres on the Grand Inga project, a giant development projected to generate up to 40,000 MW, enough to power much of the African continent. Alongside hydropower, the government is exploring alternative energy sources, including geothermal and solar, with several private sector agreements in progress.

Impressive as this is, it is nonetheless true that only about 19% of the DRC’s population has access to electricity. The government aims to raise this figure to 32% by 2030, emphasising both infrastructure development and diversification of the energy mix.

Ample opportunities for business exist in these development projects. Since only 19% of the population has access to electricity, and the country is already welcoming of renewable energy, there is a unique opportunity here to serve over 80% of the DRC’s population.

Opportunities in the Democratic Republic of Congo are mostly present in two ways:

• In the development of existing, underexploited green energy sources
• In growing access to electricity

2.    Ethiopia

Ethiopia generates an impressive 100% of its electricity through clean sources.

96% of its electricity comes from hydropower, sourced through its many rivers and the elevated terrain of the Ethiopian Highlands. Wind energy currently accounts for the remaining 4%, with other initiatives currently underway to bump this number up.

But if Ethiopia is already green energy-powered, are there even opportunities for business development in the country?

Yes.                                         

Because currently, while Ethiopia is 100% powered through clean energy, only 55.4% of its population has access to electricity.

Besides, despite having the potential to produce up to 260,000 GWh (gigawatt per hour) of electricity annually from hydropower, only about 10% of this capacity has been harnessed so far, resulting in an installed capacity of roughly 4,330 MW (megawatt). A major boost is expected with the completion of the Grand Ethiopian Renaissance Dam, currently 95% finished, which will add a substantial 6,450 MW once fully operational.

To diversify its energy mix, Ethiopia is also working to generate more electricity from wind power. Existing projects like the Adama Wind Farms (204 MW) and the Ashegoda Wind Farm (120 MW) are already feeding electricity into the grid. The Ethiopian Electric Power Corporation (EEPCo) estimates the country has around 1.3 million MW of untapped wind energy potential. In a recent development, a UAE-based company pledged $600 million to build a 300 MW wind farm—the largest in Ethiopia once completed.

Opportunities in Ethiopia are mostly present in two ways:

• In the production of more electricity to fulfil Ethiopia’s full potential
• In the diversification of Ethiopia’s energy mix (i.e. pushing wind power more)

3.    Mozambique

Mozambique stands out as one of the world’s greenest energy producers, with nearly 100% of its electricity coming from renewable and low-carbon sources. Hydropower dominates the energy mix, making up approximately 81% of the country’s installed capacity.

With an estimated 187GW of power generation potential, Mozambique currently holds the largest energy resource base in southern Africa, making it an excellent country to expand to for this sector. At the heart of Mozambique’s power system is the Cahora Bassa Hydroelectric Dam, which supplies 2,075 MW of electricity.

That being said, only about 34% of Mozambique’s population currently has access to reliable electricity. This limited access underscores the gap between the country’s vast energy potential and its domestic challenges.

Looking ahead, natural gas is expected to play a growing role in Mozambique’s energy landscape. Projections indicate that by 2030, gas could account for up to 44% of the country’s electricity generation, helping to diversify the energy mix and expand grid access to more households and businesses.

Opportunities in Mozambique are mostly present in two ways:

• In the further development of hydropower
• In growing access to electricity

4.    Malawi

Malawi’s energy use is heavily dependent on hydropower, which produced approximately 95% of the country’s total electricity in 2022, based on a generating capacity of 758 MW.

However, Malawi still faces major energy access challenges, with only 14% of its 21.7 million people connected to electricity as of 2022. Electricity access is disproportionately turned toward urban areas, where 54% of residents have electricity, compared to just 5.6% in rural communities. In these rural regions, most households rely on sources like firewood and agricultural waste to meet their everyday energy needs.

Business opportunities exist in the development of infrastructure and the use of existing green energy sources to help power the remaining 86% of the population’s electricity needs.

Opportunities in Malawi are mostly present in two ways:

• In developing the still underexploited hydropower that natural resources hold
• In growing access to electricity

Expand to Africa safely with your African Employer of Record (EOR)

With over 15 years’ experience operating in 46+ African countries and supporting organisations as they expand to the country, Africa HR solutions is the African expert you need to thrive in the green energy industry. Our local teams understand local regulations and keep you up-to-code, while offering advice that will help you grow. To find out how we can help you through our EOR offer, feel free to chat with one of our experts.