A new report has highlighted the growth and potential of Africa’s minigrid sector, which is seen as crucial for increasing access to electricity on the continent.
The third edition of the Benchmarking Africa’s Minigrids Report, released by the Africa Minigrid Developers Association (AMDA), provides an in-depth analysis of the sector.
It notes that while costs have decreased globally, deployment costs in sub-Saharan Africa remain higher than in other regions.
But the report also highlights opportunities for growth, particularly in rural areas where many communities are still without electricity.
“Minigrids have the potential to transform the lives of millions of people in Africa,” said AMDA CEO Olamide Niyi-Afuye.
“They provide a reliable and sustainable source of energy, which can power homes, businesses and communities.”
The report also emphasizes the importance of a supportive regulatory environment and the need for innovative financing models to help drive growth in the sector.
Industry stakeholders have welcomed the report, saying it provides valuable insights into the challenges and opportunities facing Africa’s minigrid sector.
“This report is a major achievement,” said Jude Numfor, CEO and Founder of REI-Cameroon.
“It helps us to understand what is happening in the sector and where we need to focus our efforts.”
Anita Otubu, Senior Director at Sustainable Energy for All (SEforALL), added: “This report provides the most comprehensive analysis of Africa’s minigrid industry.
“It sheds light on costs, performance and investment trends, and gives us clear insights into what works and what doesn’t.”
The report’s findings are particularly significant, given the scale of the energy access challenge facing Africa.
According to the International Energy Agency (IEA), around 600 million people in sub-Saharan Africa lack access to electricity.
But with the right policies and investment in place, the IEA says that universal energy access is possible by 2030.
AMDA is urging policymakers, financiers and development partners to engage with the report’s findings and work together to unlock the full potential of minigrids in Africa.
