Earlier this year, South Africa's Just Energy Transition JET was left with a 1bn funding gap after the US's withdrawal from the partnership. However, instead of stalling the continent's climate change initiatives, a story of resilience, innovation, and increasingly sophisticated financial structuring is emerging.
The continent's approach to its energy transition has always been uniquely African and the renewable energy sector and stakeholders responded with a sense of urgency and innovation. Unlike developed markets with established grid infrastructure, African countries are leveraging their energy challenges as opportunities for leapfrogging. Countries that never had comprehensive generation capacity are now building renewable-first energy systems, while nations with ageing coal infrastructure are pioneering decommissioning and decarbonisation strategies that integrate renewable alternatives.
Gas has emerged as a critical transition fuel, particularly in regions with limited renewable-energy potential. In West Africa, where large-scale solar opportunities are constrained compared to southern Africa, gas is replacing diesel generators while providing energy security for growing populations. This pragmatic approach balances transition goals with the immediate reality that over 600m Africans still lack energy access.