Keypoints:
- SMRs gain traction in Africa’s clean energy transition
- Kigali summit urges regional capital mobilisation
- Skills and blended finance are key to success
AS energy poverty continues to stall development across the continent, African nations are turning to nuclear technology—particularly Small Modular Reactors (SMRs) and Micro Reactors (MRs)—as a clean, scalable solution. These emerging technologies offer the promise of reliable, low-emission power and are gaining traction as part of Africa’s long-term energy strategy.
But tapping this potential requires something in short supply: affordable, long-term capital. This was the central theme of the Mobilising Capital Investment session at the recent Nuclear Energy Innovation Summit for Africa in Kigali, Rwanda.
Local capital must lead the way
Opening the session, Tesi Rusagara, Rwanda’s Minister of State for Public Investments and Resource Mobilisation, called for a shift away from traditional concessional finance towards domestic and regional capital mobilisation. She noted that Africa’s financial systems must evolve beyond their historic focus on short-term government securities to fund infrastructure with decades-long lifespans.
Rusagara pointed to Rwanda’s financial sector—which accounts for 67 percent of GDP—as a reservoir of untapped investment potential. With the right policy tools, including public-private partnerships and de-risking mechanisms, local capital can be mobilised at scale to fund transformative energy projects.
Africa faces $100bn infrastructure shortfall
According to the African Development Bank, Africa faces an annual infrastructure financing gap of $100bn—a shortfall that severely hampers energy access and broader development. This financing deficit is worsening as official development assistance declines amid global uncertainty.
Despite these challenges, momentum is building. Countries like Rwanda and Kenya are pushing ahead with plans to deploy their first SMRs, while others are conducting feasibility studies.
The International Atomic Energy Agency (IAEA) is backing the effort. Director General Rafael Grossi told the summit there is ‘nothing preventing Africa from claiming its place’ in the global clean energy race. He stressed that access to reliable and clean electricity is now a ‘pressing necessity’, not a luxury.
Blended finance and trust-building
Stéphane Ouedraogo, Managing Partner at Stallion Capital Africa, addressed the complexity of financing projects with 60–80 year life cycles. Encouragingly, he noted that the World Bank is showing willingness to support nuclear energy components—an endorsement that brings not just ‘new money’ but ‘confidence’, thanks to the Bank’s rigorous vetting and long-term concessional terms.
Other panellists—including Ibrahim Diouf of the West African Development Bank, Chris Opperman of C5 Capital, and Mansour Avaya, Co-founder of Exxon and CEO of Epox—outlined the core elements for financing success: blended finance, strategic use of development banks, stronger private sector incentives, and aligning nuclear investments with climate goals.
Skills gap must be bridged
In addition to capital, the summit highlighted the need for human capacity. Africa’s nuclear ambitions will stall without a technically skilled workforce. The panel identified the AfCFTA protocol on free movement as a practical tool to enable African youth to study and work across borders, thereby closing regional skills gaps.
Nuclear power gains political momentum
The Kigali summit brought together top-level officials, investors and experts to chart a course for Africa’s nuclear future. Though challenges remain, the message was clear: with regional innovation in finance, skills, and policy, nuclear energy can help power the continent’s growth—securely and sustainably.
