Unlocking private investment for urban solar in Africa: Key players convene to address financing gaps
Published: 27 Mar 2025
Climate Finance
Over 600 million people in Sub-Saharan Africa still lack access to electricity, with urban populations expected to double by 2050. On-grid rooftop solar presents a strong opportunity to power public buildings, lower energy costs, and strengthen climate resilience. However, investment remains limited due to persistent financing gaps and market barriers.
To tackle this pressing issue, the Covenant of Mayors in Sub-Saharan Africa (CoM SSA) and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) hosted a high-level event titled Unlocking Private Investment for Urban Solar Projects in Sub-Saharan Africa, in partnership with the Global Covenant of Mayors for Climate & Energy (GCoM). The event brought together key voices from across sectors, including the European Commission (DG INTPA), GCoM, Triple Jump, KOIS, ICLEI, Urban Transitions Mission, BASE Foundation, Empower, SolarPower Europe, Brun Cessac, and the Brussels Africa Hub.
Spotlight on financing gaps
The opening discussion centred on a key question: How can we close the financing gap for solar in African cities? Speakers reflected the need for innovative financing mechanisms and stronger public-private collaboration. “Africa should be viewed through the lens of opportunities and new business segments. A continent rich in potential, yet constrained by investment gaps, remains hindered by systemic and politically driven underinvestment in infrastructure, industry, and innovation,” said Yodit Zeggay, Head of Project at GIZ CoM SSA.
Lars Gronvald, Team Leader at the European Commission’s DG INTPA, added: “Through the Global Gateway, Team Europe is advancing investments in energy access and green urbanisation. CoM SSA is contributing to these aims, and one of the key values lies in creating shared spaces for dialogue, like today’s event, where we can link financial tools to the real needs of cities.”
From legal bottlenecks to business models
Legal and financial frameworks emerged as critical levers for scale. Participants explored enabling conditions such as regulatory reform, business models, and the role of blended finance in de-risking investment. Insights were drawn from legal reviews, financial modelling, and successful examples from the region.
One of the key topics discussed at the event was the Urban Smart Energy (USE) approach, a business model developed by GZ CoM SSA to support city administrations in conceptualising and implementing rooftop solar and energy efficiency projects. The USE model follows a modular process that begins with site identification and screening, followed by technical and financial assessments, and concludes with project structuring support. During the session, Robert Kirchner, USE Expert at GIZ CoM SSA, and Francisco Ramirez C., Sustainable Finance Senior Specialist at BASE Foundation, presented data from the current pipeline, which includes 41 fully assessed sites and 32 sites currently under assessment across Kenya, Cameroon, Nigeria, and Ghana. In Nigeria, the business case for rooftop solar is particularly strong, as some sites showed diesel generators accounting for up to 30% of their energy demand.
Strengthening implementation through partnerships
Kruti Munot (GIZ), Benjamin Clarke (Solar Power Europe), and Oscar Prat (GCoM).
Scaling collaboration
CoM SSA is creating new opportunities for engagement. “Africa is not just growing—it will continue to grow. The real question is whether the European private sector will recognise Africa as a geopolitical and economic priority or wait for ‘mature’ markets, missing the chance to be co-architects of Africa’s economic transformation. The emphasis is on co-creation, not on joining as latecomers when others have already engaged,” said Yodit Zeggay, Head of Project at GIZ CoM SSA. Private sector actors and impact finance organisations are invited to connect with the programme to support sustainable energy solutions in African cities.
[Caption for featured picture: From left to right: Vanessa Vovor, Country Manager at GIZ CoM SSA; Andy Deacon, Co-Managing Director at GCoM; Yodit Zeggay, Head of Project at GIZ CoM SSA; Lars Gronvald, Team Leader at DG INTPA; and Mouctar Bah, President of the Brussels Africa Hub.]
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