Unlocking Renewable Energy Technology Transfer Potential Through AfCFTA
- FIDEP Foundation ER Paper
- Apr 25
- 2 min read
A Policy Roadmap To Rethinking Energy Transition In Africa
Investment in Energy Transition is the best economic opportunity on the continent at the moment. While Africa possesses some of the world’s richest renewable energy resources, millions remain without access to reliable electricity. Imported solar panels, wind turbines, and energy storage technologies remain expensive due to high tariffs and fragmented supply chains. Weak policy coordination between nations further complicates efforts to scale up investment in clean energy. The African Continental Free Trade Area (AfCFTA) offers a mechanism to break these barriers, create an integrated energy market, and accelerate the transition to sustainable power. The challenge is whether governments and regional bodies can move beyond rhetoric and implement reforms that will shift Africa’s energy future.
The economic case for renewable energy integration under AfCFTA is strong. Lowering trade barriers and streamlining regulations could significantly cut costs, increase investor confidence, and reduce Africa’s dependence on fossil fuels. The African Development Bank (AfDB) estimates that achieving universal electricity access by 2040 will require $120 billion in annual investments. Without coordinated action, energy poverty will persist, and opportunities for industrial growth will be lost. This means that policymakers must take bold steps to ensure that AfCFTA delivers trade liberalization while providing a foundation for a just and inclusive energy transition. Without progressive governance structures, the promise of a unified energy market will remain unfulfilled.
To do this, we propose the following:
Africa exports lithium and cobalt while importing nearly 80% of its solar and battery technology. Establishing AfCFTA-backed clean energy manufacturing hubs will create jobs, increase supply chain resilience, and reduce dependency on external markets.
Africa’s energy infrastructure remains fragmented, preventing surplus power from reaching deficit areas. Strengthening cross-border power pools, modeled on the Southern African Power Pool (SAPP), will improve electricity access and lower costs.
Tariffs and regulatory inconsistencies drive up costs for solar panels, wind turbines, and battery storage. AfCFTA must enforce policy frameworks that remove import duties on clean energy technologies while promoting local value addition.
Large-scale renewable projects often prioritize commercial and industrial users over households. Governments must prioritize decentralized energy solutions, ensuring that rural and underserved communities benefit from the transition to clean power.
Call to Action
Implementing these strategies requires more than financial commitments. It demands institutional accountability and governance reforms. The AfCFTA Secretariat must play a proactive role in ensuring that trade and energy policies align to support sustainable development. Regional economic communities, including ECOWAS, SADC, and EAC, must integrate renewable energy into their economic planning and create mechanisms for joint project financing. African governments must legislate policies that attract investors while safeguarding community interests.
Finally, we repeat; Africa’s renewable energy transition is the best economic opportunity there is on the continent at the moment. If Africa is to meet its clean energy targets, stakeholders must act now. The continent has the resources, the market demand, and the economic potential. What is needed is decisive leadership to turn ambition into reality. Policymakers, development banks, and international partners must prioritize renewable energy investments under AfCFTA. Governments must eliminate trade barriers, facilitate technology transfer, and establish regulatory frameworks that encourage cross-border energy trade.
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