Off-Grid Solar Expands Across Africa as Private Sector and Donors Drive Electrification Push

Off-grid solar power is emerging as a central solution to Africa’s electricity deficit as population growth outpaces grid expansion. According to the International Energy Agency, sub-Saharan Africa accounts for most of the world’s 730 million people without electricity, while the African Development Bank estimates that more than 600 million Africans still lack reliable access to power. Diesel generators continue to bridge supply gaps and provide 9 % of the region’s electricity at an annual fuel and maintenance cost of up to $50 billion, the World Bank reports. Decentralized solar systems have become a faster and cheaper alternative, with the World Bank and AfDB’s “Mission 300” initiative targeting 300 million new connections by 2030. Between 2020 and 2022, off-grid solar represented 55 % of new power connections in sub-Saharan Africa and served 561 million people globally in 2023, supported by pay-as-you-go financing models based on mobile money platforms.

The World Bank’s Off-Grid Solar Market Trends Report 2024 notes strong productivity gains from solar-powered equipment. Surveys across 31 countries show that 86 % of users of solar water pumps achieved higher yields, and 88 % of solar refrigerator users applied them for income-generating purposes. In 2023, more than 3 million people operated businesses using solar home systems. Private investment has driven much of this expansion. Between 2018 and 2024, firms such as Sun King and Bboxx expanded operations across the continent. Sun King, which supplies power to 30 % of Kenyan households, completed a $156 million securitization transaction in 2024 with regional banks after raising $130 million in 2023. Bboxx’s 2022 acquisition of PEG extended its reach to over 2.5 million customers across ten countries.

Telecom operator Orange is also advancing off-grid energy through its Orange Energies platform, which connected approximately 4 million people in 13 countries by 2024. The company has deployed IoT-based smart metering via its Orange Smart Energies system and secured a €150,000 contract in Côte d’Ivoire and a $360,000 agreement with the World Bank and GIZ to electrify 8,000 households in Liberia by mid‑2025. Despite progress, the sector faces financial and structural constraints. Reaching remote and low-income communities requires about $3.6 billion in annual investment through 2030, 40 % of which must come from targeted subsidies. Only 22 % of households without electricity globally 16 % in sub-Saharan Africa can afford monthly PAYGo payments.

Rising logistics costs, currency depreciation, and inflation continue to pressure operators. In Nigeria, the price of solar lanterns rose up to 300 % in 2023 following local-currency weakness despite declining global component costs. Heavy reliance on imported equipment and limited local assembly capacity expose systems to frequent failures, while low-quality imports Rearly 70 % of market sales undermine consumer confidence.

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