Decentralised Solar Emerges as Africa’s Fastest Path to Powering Economic Growth

Decentralised solar energy has been identified as a critical economic necessity for expanding electricity access across Africa, particularly in rural and underserved communities where limited power supply continues to constrain productivity, job creation, and inclusive growth.

Despite global progress, more than 666 million people worldwide still lack access to electricity, with Africa accounting for over 80 per cent of this population. In sub-Saharan Africa, rural electricity access stood at just 31.6 per cent in 2023, compared with 82.2 per cent in urban areas, according to World Bank data highlighting a gap that continues to suppress economic activity, limit access to healthcare and education, and slow industrial development.

As governments seek to close this gap, decentralised energy solutions are increasingly recognised as essential to unlocking economic potential in rural regions. The International Energy Agency (IEA), in its October report Financing Electricity Access in Africa, estimates that decentralised systems could deliver about 55 per cent of new electricity connections on the continent by 2035, making them central to Africa’s development and growth strategies.

These systems support local economies by enabling small businesses, agro-processing, cold storage, digital services, and micro-industries activities that rely on reliable power to grow incomes and create jobs. Development finance institutions and private investors now view decentralised energy as a cost-effective complement to grid expansion, capable of accelerating returns on investment while improving livelihoods.