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European union commits €618 million to drive Africa’s clean energy transition

The package will fund renewables, grid expansion, and cross-border power trade in Africa
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The European Commission, an agency of the European Union (EU), has announced a €618 million ($673.6 million) Team Europe package aimed at accelerating Africa’s transition to renewable energy — a major boost for the continent’s clean energy drive.

The announcement was made by European Commission President Ursula von der Leyen during the Global Gateway Forum in Brussels.

Von der Leyen said Africa has all it takes to become a clean energy leader from vast solar potential to human capacity.

“With this €618 million Team Europe package, we are joining with our African partners to power a clean and sustainable energy future for the continent,” she said.

The initiative is part of the “Scaling Up Renewables in Africa” campaign by the EU, South Africa, and Global Citizen to attract public and private investment in renewable energy across the continent.

Funding for key projects

The package will support renewable energy development, grid expansion, and cross-border electricity trade across several African countries.

 It targets both rural electrification and industrial growth, aiming to improve access and resilience.

Breakdown of the funding includes:

  • Kenya €55 million ($59.95 million) : Expansion of green electricity systems to boost supply for homes and businesses.
  • Uganda €60 million ($65.4 million): Last-mile electrification to benefit over 250,000 rural residents.
  • DR Congo €90.14 million ($98.25 million): Electrification of Kisangani and nearby regions to enhance grid reliability.
  • Mauritania €125 million ($136.25 milllion): Development of a regional transmission corridor for urban centres.
  • Nigeria €20 million ($21.8 million): Technical assistance to scale renewable energy for farmers and small enterprises.
  • Cabo Verde €39 million ($42.15 million): Expansion of the Cabeolica wind and battery storage project.
  • Zambia–Tanzania €30 million ($32.7 million): Strengthening regional power interconnections for drought resilience.
  • Togo €199 million ($216.91 million): Renewable energy and storage project in Kpalimé to boost generation capacity.

Expanding green partnerships

The EU also reaffirmed its commitment under the Just Energy Transition Partnership (JETP) with South Africa.

 The new funding builds on the €545 million ($590.05 million) aligns with the Africa–EU Green Energy Initiative (AEGEI) launched at the 6th EU–AU Summit in 2022.

The AEGEI seeks to provide electricity access to at least 100 million Africans by 2030.

The Team Europe approach brings together 12 EU member states, their development finance institutions, the European Investment Bank (EIB), and the European Bank for Reconstruction and Development (EBRD).

Together, they aim to accelerate the renewable energy transformation across Africa.

Investment outlook in Africa

In a related development, Africa secured a $100 billion investment commitment during the Second Africa Climate Summit in Addis Ababa.

Kenyan President William Ruto said the deal unites the continent’s leading development finance institutions aimed at driving renewable energy and green industrialisation.

 “Our financiers committed to mobilise up to $100 billion to power Africa’s green industrialisation,” Ruto said.

According to the International Energy Agency (IEA), Africa’s clean energy projects attracted about $23 billion in investments between 2019 and 2024.

The IEA’s World Energy Investment report shows clean energy funding on the continent rose from $17 billion to $40 billion in the same period.

However, the agency noted that most energy investments in Africa are still directed toward oil and gas.

Despite that, global energy investment is expected to hit $3.3 trillion in 2025, driven largely by renewables and electrification efforts.

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