Onagoruwa: Africa Must Mobilise $100 Billion Annually to Power Energy Transformation

At a recent gathering of energy and investment stakeholders in Abuja, Dr. Gabriel A. Onagoruwa, a senior expert in energy policy, stressed that Africa requires at least $100 billion every year to meet its growing energy needs and successfully transition toward cleaner, more reliable power systems. According to him, without urgent and large-scale funding, the continent risks lagging further behind in industrial competitiveness, economic growth, and social development.

Onagoruwa pointed out that despite the continent’s vast natural resource base—including gas, solar, wind, and hydro—Africa’s energy systems remain trapped by under-investment, ageing infrastructure, frequent power outages, and extremely low electricity access in rural areas. He argued that comprehensive legal reforms, alongside innovative financing models, must be implemented to unlock private capital and build the modern infrastructure required to support both economic expansion and social welfare.

A key priority, he explained, lies in strengthening the regulatory environment. Many African countries still operate with unclear or cumbersome energy laws that deter investors. Transparent, predictable regulations, simplified licensing, and guarantees of fair returns are needed to attract private investment into generation, transmission, and distribution. Without these reforms, he warned, the $100 billion annual financing target will remain a distant ambition.

Onagoruwa emphasised that governments alone cannot shoulder the funding burden. Mobilising multiple sources of finance will be essential. He advocated blended finance, which combines public resources, development finance institutions, private equity, and climate funds. He further identified diaspora remittances, green bonds, impact investment, and regional cooperation as key channels to close the financing gap. According to him, Africa must also engage capital markets more effectively, creating instruments that appeal to both local and international investors.

Equally crucial, he noted, is the adoption of clean energy technologies. Africa must expand solar photovoltaic systems, mini-grids, energy storage facilities, and gas-to-power infrastructure. He argued that natural gas should be treated as a transition fuel, helping to balance reliability with global decarbonisation goals. With abundant renewable resources and falling technology costs, Africa has the chance to leapfrog traditional, polluting systems and build a more sustainable energy future.

Onagoruwa warned that the cost of delayed investment is already high. Frequent power shortages and dependence on expensive diesel generators are driving up production costs and discouraging investors. Beyond economics, energy insecurity continues to undermine access to education, healthcare, and quality of life across the continent. He insisted that universal access to energy must be treated not just as an infrastructure goal but as a fundamental social and economic right.

Despite these challenges, he acknowledged that some African countries are making encouraging progress. Regulatory reforms in certain markets have opened space for more private participation in power generation and distribution. Development partners and regional financiers are also committing more resources to energy projects. However, he said that the scale of progress still falls short of what is required. The $100 billion annual figure, he explained, is not arbitrary but a minimum threshold necessary to modernise grids, expand rural access, de-risk private capital, and build new industries powered by clean energy.

He also called for greater collaboration among African nations. Energy transformation, he stressed, cannot succeed if pursued in silos. He urged governments and regional bodies such as the African Union to develop cross-border trade in power, harmonise regulatory standards, and invest in shared infrastructure such as regional transmission lines. By pooling resources and expertise, countries can accelerate the pace of transformation and deliver broader benefits to their citizens.

Civil society and local communities, Onagoruwa noted, also have vital roles to play. By demanding transparency and accountability, they can ensure that investments deliver real impact rather than being lost to inefficiency or corruption. Public involvement in energy planning will also help ensure that projects align with the needs of ordinary people rather than serving narrow interests.

Looking ahead, Onagoruwa said Africa has an opportunity to reshape its energy landscape within a generation. If the continent succeeds in mobilising the required $100 billion annually, it could drastically reduce energy poverty, strengthen industrial growth, create millions of jobs, improve healthcare and education, and make a meaningful contribution to global climate targets.

But if action is delayed, he warned, Africa risks remaining stuck in cycles of energy scarcity, environmental degradation, and economic stagnation. For him, the message is clear: bold reforms, innovative financing, and collective will are urgently needed to light up Africa’s future.