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Africa's clean energy transition is increasingly defined by the need to build robust institutions, markets, and regulatory systems, rather than solely focusing on constructing renewable energy projects. This shift comes as global renewable energy generation reached a historic milestone in 2025, accounting for 34% of the world's electricity, surpassing coal's 33% share.

Experts note that while technology is no longer the primary bottleneck, systemic obstacles are slowing the deployment of clean energy, especially as industrialization, AI, and electrification drive up demand. This is critical for providing power access to the 600 million Africans still unconnected. "Clean energy is now cheaper than fossil fuels in virtually every part of the world," stated Michael R. Bloomberg, UN Secretary-General’s Special Envoy on Climate Ambition and Solutions. He added, "But fixable obstacles are still slowing down deployment, and with energy demand rising at an unprecedented speed, we can’t allow those obstacles to continue standing in the way."

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Clean energy is now cheaper than fossil fuels in virtually every part of the world. But fixable obstacles are still slowing down deployment, and with energy demand rising at an unprecedented speed, we can’t allow those obstacles to continue standing in the way.

Bloomberg Philanthropies has launched a new $285 million initiative to bolster clean energy industries in emerging and developing economies. Unlike direct project financing, this initiative will invest in strengthening market design, regulatory capacity, technical expertise, and industry institutions. This approach reflects a growing consensus that Africa's energy transition is hindered less by a lack of resources or technology and more by the institutional capacity required to translate potential into viable projects and grid electricity.

Challenges such as weak market design, limited grid planning, slow permitting processes, and fragmented regulations continue to delay many projects across Africa. "What has been missing is not the potential, but the institutional infrastructure and capabilities to unlock it," said Saliem Fakir, executive director of the African Climate Foundation. He believes that philanthropic efforts targeting these specific gaps can significantly alter the trajectory of the continent's energy system. Investors also point to policy uncertainty and slow permitting as key barriers, even as renewable energy costs fall and investment interest grows.

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What has been missing is not the potential, but the institutional infrastructure and capabilities to unlock it.