Africa’s power sector is drawing growing global capital attention, with investment reaching an estimated $13.84 billion in 2025 across energy deals – the vast majority in clean power, underscoring investor interest in the energy transition. However, despite 74,000 MW of announced capacity, only about 14,500 MW has been realized, revealing a persistent “execution gap” between projects announced and projects delivered. This bankability gap remains one of the principal challenges for investors seeking real returns in Africa’s energy markets.
At its core, “bankable” means return structures and risk mitigation that satisfy institutional capital requirements – including stable revenue streams, enforceable contracts, experienced sponsors and financial structures that make projects credible to lenders. Investors are increasingly targeting deals with these features, and measurable success is emerging where project fundamentals align with global finance expectations.
The Bankability Imperative
Take South Africa as an example: a 300 MW solar + battery energy storage system (BESS) project recently reached FID as one of the country’s largest private utility-scale solar-plus-storage deals. With 300 MW of solar co‑located with 660 MWh of battery storage and backed by 25‑year PPAs with Sasol and Air Liquide, the project illustrates how strong sponsor backing, firm offtake agreements and hybrid dispatchable design can attract financing, enable large-scale execution and build investor confidence.
While smaller in scale, Zambia’s Ilute solar Project also reached financial close in early 2026. The 32 MWp solar plant – one of the first in the region financed through power sales into the Southern African Power Pool – secured capital on the strength of a market-based PPA with GreenCo Power Services and a layered debt structure that mitigates regional price risk. Led by Serengeti Energy, Kwama Energy and FMO, the deal integrated senior and subordinated financing tranches, with the latter providing flexibility to absorb potential market fluctuations.
Beyond utility-scale renewables, program-based and blended finance vehicles are increasingly being used to pool public, concessional and private capital to de-risk early-stage projects. For example, the Afrigreen Debt Impact Fund, which closed at €100 million last year, provides long-term financing for small- and mid-scale solar projects, illustrating the growing importance of tailored debt solutions to bridge finance gaps and unlock private-sector-led deployment.
Lessons from Success and the Road Ahead
The growing pipeline of announced projects highlights why proven project sponsors and developers matter now more than ever. Experienced sponsors, clear offtake arrangements and blended finance structures can convert project potential into realized capacity, unlock further investment and strengthen investor confidence in frontier markets.
The upcoming Invest in African Energy Forum in Paris (April 22-23, 2026) – bringing policymakers, developers, financiers and international investors together – will play a vital role in this transition. By showcasing live, investible opportunities and facilitating dialogue on project structuring, risk mitigation and policy frameworks, the forum helps translate investor interest into closed deals and tangible capacity delivered on the ground.
Ultimately, closing Africa’s bankability gap won’t happen through capital flow alone. It will require proven project sponsors and developers, innovative finance structures and strong engagement platforms that align risk and return, thereby delivering the energy capacity that powers economies, creates jobs and accelerates inclusive development across the continent.
IAE 2026 is an exclusive forum designed to connect African energy markets with global investors, serving as a key platform for deal-making in the lead-up to African Energy Week. Scheduled for April 22–23, 2026, in Paris, the event will provide delegates with two days of in-depth engagement with industry experts, project developers, investors and policymakers.
Africa Fact: The cost of shopping and distributing goods in Africa adds 320% to the cost of the manufactured product.
Black Firefly
Vinny Lingham was an internet entrepreneur before South African venture capitalists were even investing in the internet. He emigrated to the US to pursue his business dreams and launch Yola. In 2007, he raised USD5 million. Lingham went on to found a few more internet businesses including incuBeta and Gyft, which he sold from more than R500 million. He\’s currently working on his latest business Civic, which is an identity protection and management start-up. Vinny Lingham put his weight behind the Silicon Cape Initiative, to increase South Africa\’s global competitiveness and place the Cape on the global entrepreneurial map. He went on to become one of the \”dragons\’ on the South African edition of Dragons\’ Den, as well as one of the \”sharks\’ on M-Net\’s Shark Tank.