Despite the need for energy, more than 600 million Africans have no access to electricity. The continent exports about half of its oil and gas production. African countries are in effect supplying the rest of the world with energy, while their own citizens cannot heat their homes, light their streets or power their schools.

By Hluma Luvo Ralane

The African continent is endowed with massive but untapped energy resources, including both conventional and unconventional resources. For decades to come, the economic and political landscape of Africa is predicted to be defined by the net phase of economic recovery and post COVID-19 prosperity, climate-related challenges and continent-wide geopolitical tensions. From the energy perspective, significant transformation processes are expected to take place provided that both financial and technological investment opportunities are available in Africa’s energy value chain.   The economic development of any country is dependent on the availability of energy. Therefore, how African cities address their energy needs as they grow will determine their future, and that of the continent.

Energy is central to economic development and societal advancement, whether domestic, industrial or large-scale use. Despite the need for energy, more than 600 million Africans have no access to electricity. The continent exports about half of its oil and gas production. African countries are in effect supplying the rest of the world with energy, while their own citizens cannot heat their homes, light their streets or power their schools. The scale of the financing deficit compounds the problem: according to the International Energy Agency (IEA), achieving universal electricity access across sub-Saharan Africa by 2035 will require investment of approximately $15 billion per year, yet less than $2.5 billion per year is currently being committed — a sixfold shortfall. The situation will only worsen, given the rapid population growth, rising economies, and increasing urbanization. Modelling by the Institute for Security Studies African Futures (AFI-ISS)  team shows that, as domestic energy use surges, the continent will likely become a net energy importer before 2040, reversing its long-standing role as a net exporter. This shift comes against a backdrop of underdeveloped supply systems, heavy dependence on fossil fuels and weak national and regional grids — where average transmission line losses of 15% undermine even what little capacity is built. Africa’s cities lie at the heart of this unfolding story. Rapid urbanization means more Africans than ever, now live in cities, a billion of us will do so by 2035. The engines of development, cities, also face unique energy pressures: from powering transportation and industry to providing basic services. The continent’s development trajectory will depend in large part on how well its cities meet these pressures.

For Africa’s burgeoning urban population , energy access is not a luxury. It is essential for everyday life. A stable energy supply powers hospitals, schools, businesses and the digital infrastructure that drives the modern economy. Conversely, energy poverty deepens inequality. It disrupts education, harms public health and disproportionately affects women and children, who bear the burdens of traditional fuel use. The prevalence of informal settlements across the continent amplifies this divide, limiting access to modern cooking, lighting and cooling, and ultimately leading to negative health outcomes for the entire population. Therefore, there is a need for policies that will enable investment in renewable urban generation and micro-grids. A rapid scaling of renewables, accompanied by a boost in storage capacity and mini-grids to serve dense urban and peri-urban communities is needed. Localised systems can be more robust and offer greater resilience. Policies that support transit-oriented development, densification, and walkable neighborhoods should be non-negotiable. Good urban planning can reduce energy use. Africa’s cities need to actively tackle urban sprawl as they grow. The urgency of this is underscored by a stark paradox: the IEA estimates that Africa holds approximately 60% of the world’s best solar resources, yet the continent attracts only about 2% of global clean energy investment. In 2024, 64% of energy investment in Africa still flowed to fossil fuel projects — the inverse of global trends, where clean energy receives a two-to-one advantage over fossil fuels. Renewable energy deployment across Africa reached only around 4 gigawatts in 2024, far below the 32.5 gigawatts per year required to meet the African Union’s target of 300 GW of renewable capacity by 2030. Closing this gap demands not only capital but coordinated urban energy policy that creates the market conditions to attract it. Furthermore, as the world shifts from fossil fuels to renewable energy sources, diplomacy becomes vital in navigating the geopolitical, economic, and technological implications of this transition. Energy diplomacy  is said to leverage foreign policy tools to foster international cooperation, secure energy resources, and address climate change. For African cities navigating the geopolitical consequences of this transition, building robust energy diplomacy frameworks must be a strategic priority.

Africa’s energy transition will be meaningless unless it includes and serves the poor communities. Cities are a fertile frontier for fighting poverty and inequality. Access to electricity and affordable, sustainable energy in general must be part of any plan to alleviate poverty and build better futures. This can take many forms, ranging from subsidized solar installations, pay as you go systems or cash for power programmes.

Africa’s cities should not merely see themselves as potential beneficiaries of a coming energy transition. Instead, they should position themselves as the critical actors they are and seize a key part in shaping it.

Hluma Luvo Ralane is a Project Coordinator: Africa -US City Relations at the African Centre for the Study of the United States (ACSUS).