Africa must add at least 16 gigawatts (GW) of grid-connected power generation annually through 2050 and invest $3.2 billion to $4.3 billion yearly in transmission infrastructure to avert a looming energy crisis, according to the Africa Finance Corporation’s (AFC) “State of Africa’s Infrastructure Report 2025.”

The report, released recently, underscores the urgent need for massive investment to meet Africa’s basic energy demands. With the continent’s population growth, achieving 16 GW annually would raise per capita generation to 0.300 MW per thousand people—comparable to current levels in India and Indonesia.

“This is a critical juncture for Africa’s energy future,” the AFC stated. “Without sustained investment, the continent risks entrenched energy poverty. But with strategic reforms, Africa can seize vast opportunities in solar, gas-to-power, hydropower, battery storage, and grid modernization.”

The report highlights Latin America, particularly Brazil, as a model for unlocking private investment. Since the 1990s, Brazil’s competitive auctions and independent power transmission models have expanded its grid from 105,000 km in 2012 to 184,000 km in 2023. In 2024, Brazil’s first transmission tender alone attracted $3.65 billion—matching Africa’s annual transmission investment needs.

“Brazil’s success shows that regulatory reform, unbundled utilities, and long-term planning can crowd in private capital at scale,” the AFC noted. The corporation urged African policymakers to adopt similar frameworks to build a dynamic, integrated energy system capable of powering the continent’s growth for decades.

Failure to act, the AFC warned, could exacerbate energy deficits, hampering economic development and quality of life across the continent.