The European Union has announced a €545 million (US $636 million) investment to support power and clean energy projects across nine African countries, in a major boost aimed at modernizing electricity grids, expanding renewable energy access, and supporting the continent’s energy transition.
The funding was unveiled by European Commission President Ursula von der Leyen on September 27 during the Global Citizen Festival held alongside the U.N. General Assembly in New York.
“The choices Africa makes today are shaping the future of the entire world,” von der Leyen said. “A clean energy transition on the continent will create jobs, stability, growth, and the delivery of our global climate goals.”
Targeting Energy Access and Grid Modernization
The bulk of the funding — €359.4 million (US $419 million) — will go to Côte d’Ivoire’s Dorsale Est project. The initiative aims to expand high-voltage transmission capacity, enabling the country to efficiently export surplus electricity to neighboring nations including Ghana, Togo, Burkina Faso and Mali.
Other key allocations include:
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Cameroon: €59.1 million (US $69 million) for rural electrification.
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Somalia: €45.5 million (US $53 million) to expand access to affordable renewable energy.
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Madagascar: €33.2 million (US $39 million) for the installation of mini grids in rural areas.
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Lesotho: €25.9 million (US $30 million) to develop wind and hydropower capacity.
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Mozambique: €13 million (US $15 million) for its national energy transition strategy.
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Republic of Congo: €3.5 million (US $4 million) for targeted energy investments.
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Ghana: €2 million (US $2.3 million) for smaller-scale energy projects.
The EU is also funding a regional power grid interconnection project in Central Africa, designed to improve cross-border electricity trade and grid stability.
Energy Access Gap Remains Wide
Despite significant progress, Africa remains the least electrified continent. Around 600 million people — nearly half the population — still lack access to electricity. Although the continent is home to about 20% of the global population, it accounts for just 3% of global electricity demand.
Meeting Africa’s energy and climate goals by 2030 will require investments of over US $200 billion annually, according to the International Energy Agency (IEA). While clean energy sources provide about 40% of global electricity, their share in Africa is closer to 25%.
High debt burdens and limited access to affordable financing continue to constrain African governments’ ability to fund large-scale clean energy infrastructure, making international partnerships like the EU’s Global Gateway plan crucial. The €545 million announced this month forms part of the EU’s €300 billion Global Gateway initiative, which funds infrastructure development worldwide.
Debate Over Africa’s Energy Path
The investment comes amid an ongoing debate over how African nations should pursue their energy transitions. Some leaders have pushed back against what they view as externally imposed “green” timelines, arguing for a more flexible approach that allows countries to use both fossil fuels and renewables to meet rapidly rising energy demand.
At the recent Africa Energy Week in South Africa, Ghana’s Energy Minister John Abdulai Jinapor said:
“A just transition cannot be a rigid blueprint drafted in Brussels, Washington, or Beijing and handed to us as a mandate. Our approach is not to choose between fossil fuels and renewables but to strategically integrate both to power growth, jobs, and resilience.”
Balancing Climate Goals and Development Needs
The EU’s investment signals a strategic effort to align Africa’s development ambitions with global climate targets, especially as pressure mounts to cut emissions and limit warming to 1.5 °C.
Experts say how this funding is implemented will be key. Many African power systems are underdeveloped and fragmented, requiring not just new generation capacity but also massive investments in transmission infrastructure, grid management, and maintenance.