Global Financing of Africa’s Energy Sector
Identified investments into Africa’s energy sector totalled EUR 108 billion between 2014 and 2019, of which African governments and African development banks accounted for EUR 74.8 billion, a further EUR 24.4 billion was committed by international donors in the form of ODA support for SDG7-compliant projects while identified private sector investments totalled EUR 8.7 billion. However, the SDG7 compliancy of government finances cannot be easily gauged.
This total financing fluctuated between EUR 15 billion per annum in 2014 and a high of EUR 22 billion per annum in 2018. However, unlike funding from EU Institutions and Member States, which in 2019 reached a six-year high, the global financing of SDG7 declined somewhat dramatically to EUR 17.4 billion in the same year. This is explained by a consistent decline in African government spending recorded since 2017, as well as a marked fall in private investment.
Note: Excludes African national government spending and African development finance institutions.
The data available for analysis shows that EU Institutions and Member States have played a central role in the international community’s efforts to assist Africa with achieving SDG7. From 2014 to 2019, they accounted for almost half (EUR 11.1 billion) of the EUR 24.4 billion total international ODA commitments made to SDG7 on the continent. Non-EU multilaterals were also significant funders (EUR 8.4 billion) – although EU member states are significant financiers of these institutions – while the rest of the world accounted for the remaining 20%, equal to less than half the amount committed over the period by the EU and its Member States.