Africa became the world’s fastest-growing solar market in 2025, expanding installed capacity by 17% even as global solar growth slowed sharply. While worldwide solar capacity rose 23% to 618 gigawatts — down from 44% growth in 2024 — momentum has shifted toward emerging markets, with Africa increasingly positioned as a central player in the next phase of renewable energy expansion.

The surge has been fueled largely by imports of competitively priced Chinese solar panels and declining battery storage costs, allowing households and businesses to bypass unreliable grids and expensive diesel generation. The transformation reflects both economic necessity and evolving policy frameworks across multiple African economies.

Demand Broadens Beyond South Africa

For years, South Africa dominated the continent’s solar imports, at times accounting for nearly half of all shipments. That concentration is now easing. Its share has fallen below one-third as demand accelerates across Nigeria, Algeria, Zambia and Botswana. Twenty African nations set new annual solar import records in 2025, while 25 countries imported at least 100 megawatts of capacity.

Nigeria has overtaken Egypt as Africa’s second-largest solar importer. The gradual removal of diesel subsidies has significantly altered the economics of off-grid power, pushing businesses toward solar-plus-storage systems. In Algeria, imports surged more than 30-fold year-over-year, underscoring the speed of adoption once cost barriers decline.

Yet installed capacity still lags shipments. Since 2017, approximately 64 gigawatts peak (GWp) of solar equipment has been delivered to Africa, but only 23.4 GWp is currently operational. This gap highlights both execution challenges and the pipeline potential for continued growth.

Falling Storage Costs Reshape the Energy Equation

Battery storage prices in Africa fell to $112 per kilowatt-hour in 2025 from $144 in 2023, dramatically improving the viability of round-the-clock renewable power. For a continent where baseload reliability remains a critical constraint on industrial and economic growth, cheaper storage is arguably as transformative as panel affordability.

At least 23 African countries now generate more than 5% of their electricity from solar, marking a structural shift in energy diversification. Unlike regions with long-term government roadmaps, Africa’s momentum is being driven by market economics aligning with incremental policy improvements rather than centralized strategic planning.

However, regulatory unpredictability remains a core risk. Shifting import duties, inconsistent tax regimes and unclear long-term energy commitments continue to weigh on investor confidence. For international capital — including Israeli renewable developers and U.S. infrastructure funds increasingly scouting emerging markets — policy visibility is essential.

Manufacturing Ambitions and Job Creation

Africa is not only consuming solar technology; it is beginning to build it. Nigeria has announced plans for a 1 GW solar panel factory, while facilities are under development in Egypt, South Africa and Ethiopia. The longer-term objective is technology transfer from China to reduce import dependence.

The employment impact extends well beyond manufacturing. Installation, maintenance, distribution and financing are fueling a growing ecosystem of small and medium-sized enterprises. This distributed job creation model may offer broader economic multipliers than traditional centralized energy projects.

Still, sustaining growth will require clearer regulatory frameworks and stable policy commitments. Investors will be watching whether governments can provide consistent long-term signals comparable to those in the Middle East or Europe.

Africa’s solar acceleration may mark the beginning of a structural realignment in global renewable energy demand. The next phase hinges less on equipment availability and more on governance, grid integration and capital discipline — factors that will determine whether 2025 was a breakout year or merely an early inflection point.