Market reform key to African transitions

Outdated energy trading models must be replaced with ones that are more competitive and suitable for renewables if the continent is to attract the investment it needs for the energy transition

The economic fallout from the pandemic is weighing down forecasts for renewable energy capacity additions across the developing economies of sub-Saharan Africa (SSA). During 2021, financing and project development are expected to become more challenging, in contrast to the developed nations where the transition appears to be remaining on track or even accelerating. But regulatory innovation, small-scale electrification and debate around the appropriate pace of change may positively impact energy transitions during the next 12 months. Few, if any, of Africa’s national electricity sectors are structured around a market mechanism with independent private actors participating in generation, tran