‘Africa Needs $200bn Annually to Achieve Energy Access Goals by 2030’

Africa requires about $200 billion annually to achieve its energy access targets by 2030, creating a funding gap of nearly $90 billion compared to the current investment level of about $110 billion, chairman of Schneider Electric, Jean-Pascal Tricoire, has said.

Tricoire said the funding deficit represents not only a financial challenge but also a strategic gap affecting development outcomes across the continent.

Speaking on Africa’s energy future, he noted that nearly 600 million people across the continent still lack access to electricity, citing World Bank energy access data, with Nigeria accounting for more than 80 million people without power access.

According to him, West Africa continues to record some of the world’s lowest electrification and energy reliability rates, leaving millions with inconsistent or insufficient power supply despite existing connections.

He described the energy deficit as more than an infrastructure problem, saying it limits productivity and economic growth.

“Energy is the foundation of every form of scaling, from urbanisation to industrialisation to digital transformation and artificial intelligence adoption. That principle is no longer theoretical. It is an operational reality,” he said.

Tricoire identified rapid expansion in artificial intelligence (AI) and digital infrastructure as one of two major forces increasing pressure on energy demand in West Africa.

He said global data centre electricity demand increased by about 17 per cent in 2025, driven largely by AI workloads and cloud computing growth, adding that the digital transition is becoming one of the most energy-intensive economic shifts in modern history.

In Nigeria, he noted that data centre capacity exceeds 130 megawatts, while operators remain heavily dependent on alternative energy sources due to unstable grid supply.

The Schneider Electric chairman also identified industrial localisation as another key driver of rising energy demand, citing projections that the African Continental Free Trade Area could boost Africa’s GDP by more than $500 billion by 2043 and significantly increase manufacturing output.

He said Nigeria and other regional economies are increasingly positioning themselves as production hubs rather than import-dependent markets.

Despite this, Tricoire observed that many Nigerian manufacturers still rely on diesel-powered self-generation because of unreliable electricity supply, with energy-related costs and inefficiencies resulting in billions of dollars in lost productivity annually.

“These two forces, digital acceleration and industrial expansion, are converging on the same constraint,” he said.

He added that about 70 per cent of Schneider Electric’s operations in Africa are executed through small and medium-sized enterprise (SME) partners adapting global technologies to local realities, including digital energy management, industrial automation and control systems.

According to him, local technical expertise and entrepreneurial innovation will be critical to scaling energy solutions across Africa.

“Progress is not only driven by large flagship projects. It is increasingly driven by distributed capability, local technical expertise, and entrepreneurial adaptation,” he said.

Tricoire further stated that Nigeria’s manufacturing sector contributes about 12 per cent to GDP, a relatively modest level compared to major industrial economies, while persistent energy instability continues to constrain growth.

He said rising industrial demand, alongside policies promoting local production and import substitution, underscores the need to align energy systems with productivity goals.

“The countries that resolve this alignment first will define the next phase of industrial growth in the region,” he said.

He stressed that energy should be viewed not merely as infrastructure but as a fundamental enabler of economic growth, competitiveness and industrial expansion across West Africa.

“The opportunity ahead is not only to expand capacity, but to integrate it intelligently into how economies actually produce, scale and compete,” Tricoire added.