By Adnan Adams
Sub-Saharan Africa is staring at a staggering $500 billion bill to bridge the energy poverty gap and transition to a sustainable energy system, according to Suneeta Kaimal, President and CEO of the Natural Resource Governance Institute (NRGI).
Speaking at the Future of Energy Conference 2025 in Accra, Kaimal highlighted the enormous financing gap, noting that in 2023, financing for clean and renewable energy in all developing countries reached only $22 billion.
The stark reality is that over 600 million Africans lack access to electricity, and nearly a billion rely on traditional biomass for cooking, perpetuating cycles of poverty and environmental degradation.
Kaimal emphasized that innovative financing solutions are necessary to address this challenge, citing the potential for taxing premium air travel to raise new revenue streams for sustainable development
Among some of the key challenges she noted included mounting debt burden, financing gap and unsustainable lending.
According to available statistics, African governments spend nearly 17% of their revenues on debt service, the highest of any developing region, with over half of Africans living in countries that spend more on debt than on health or education.
It is required that $500 billion is needed for sub-Saharan Africa’s energy transition, a significant challenge, with current financing models falling short. To avert this, new lending models are needed to mobilize private capital at fair interest rates, avoiding overburdening public budgets.
The NRGI Chief proffered that, to remedy the current situation; strategic, inclusive transitions are needed. Emphasising that, context-specific solutions aligned with development ambitions and public priorities are essential for successful energy transitions.
Also, leveraging Africa’s immense resources, including 30% of the world’s transition mineral reserves, can help increase public resources and drive sustainable development and exploring new financing mechanisms, such as the tax on premium air travel, can provide predictable revenue streams for sustainable development.
