Global Financing of Africa’s Energy Sector
Identified investments into Africa’s energy sector totalled EUR 195 billion between 2014 and 2020, of which African governments and African development banks accounted for EUR 86.6 billion, a further EUR 44.2 billion was committed by international donors in the form of ODA support for SDG7-compliant projects while identified private sector investments totalled EUR 10.9 billion. However, the SDG7 compliancy of government finances cannot be easily gauged.
This total energy-related financing fluctuated between EUR 8.7 billion per annum in 2014 and a high of EUR 21 billion per annum in 2015.
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 2020, they accounted for 31% (EUR 13.8 billion) of the EUR 44.2 billion total international ODA commitments made to SDG7-compliant projects on the continent. Non-EU multilaterals were also significant funders (EUR 18.8 billion) – although EU member states are significant financiers of these institutions – while the rest of the world (excluding African MDBs and DFIs) accounted for the 11%, equal to less than half the amount committed over the period by the EU and its Member States.