Keypoints:
- Africa doubled new hydropower capacity in 2024, adding 4.5GW
- 62.5GW of approved projects remain stalled due to funding gaps
- African Development Bank launches $9.72m modernisation drive
AFRICA has doubled the amount of hydropower capacity it added in 2024 compared to the previous three years combined, marking a turning point in the continent’s drive for long-term energy security. According to the 2025 World Hydropower Outlook, launched on June 25, the continent installed over 4.5GW of new ca
pacity last year, up from just 2GW in 2023.
Hydropower now provides 20 percent of Africa’s total electricity supply. But with only 11 percent of the continent’s technically feasible potential tapped so far, industry leaders say Africa holds one of the greatest untapped hydropower opportunities globally.
Major projects come online across Africa
Several flagship infrastructure projects reached significant milestones in 2024. Tanzania’s Julius Nyerere Hydropower Project began operations, while Ethiopia added 800MW to its Grand Renaissance Dam. Uganda’s long-awaited Karuma hydropower plant was fully commissioned, bringing 600MW online, and Cameroon completed the 420MW Nachtigal plant.
This surge is being driven by a wave of private sector-led developments, bolstered by strong government backing across multiple countries.
‘Africa is clearly entering a new era for hydropower,’ said Malcolm Turnbull, President of the International Hydropower Association (IHA). ‘The growth we’re seeing signals confidence in the sector – but without bold financing reform, this momentum could stall.’
Billions in approved projects still unfunded
While 2024’s achievements are significant, 62.5GW of approved hydropower projects across Africa remain stalled due to chronic financing bottlenecks. Key challenges include foreign exchange risk, uncertain offtake agreements, and broader perceptions around the bankability of long-term infrastructure deals.
Analysts warn that unless innovative financing solutions are introduced, much of Afri
ca’s vast clean energy potential will remain unrealised. Many countries continue to rely on multilateral development banks, concessional financing and blended capital structures to de-risk hydropower investments.
‘Unlocking these billions in stranded projects requires both global financial support and local policy reform,’ the Outlook notes.
Focus turns to modernisation
Alongside new construction, Africa’s ageing hydropower fleet is also under scrutiny. In 2024, the African Development Bank launched the Africa Hydropower Modernisation Programme, a $9.72 million initiative to upgrade legacy plants across eight countries.
The programme, which targets 12 privately operated sites, aims to improve reliability, reduce outages and extend asset life. It is backed by technical expertise from the IHA and aims to enhance grid stability in regions facing frequent power disruptions.
Turnbull added: ‘Hydropower’s role in the energy transition is growing. But this growth must be sustained through strong policy, targeted investment and smarter operations.’
