KEY POINTS
- South Africa leads Africa in renewable energy investment.
- Policy reforms continue to attract private capital.
- Solar, wind, and green hydrogen drive growth.
South Africa has emerged as Africa’s leading destination for renewable energy investment, supported by policy reforms, strong natural resource endowments, and a regulatory framework that continues to draw international capital, according to a new report by professional services firm Forvis Mazars.
The findings are detailed in the Powering Africa’s Future Energy report, which positions South Africa at the centre of the continent’s renewable energy transition. The country’s combination of solar and wind resources, alongside recent policy developments, has strengthened its appeal to investors seeking scalable clean energy projects across emerging markets.
“South Africa boasts exceptional renewable energy resources, such as abundant solar and wind potential, and recent policy progress further supports energy transition ambitions,” said Johan Marais, a director at Forvis Mazars South Africa.
Policy and capacity drive growth
South Africa’s early adoption of the Renewable Energy Independent Power Producer Procurement Programme has played a central role in shaping its leadership position. The programme has provided a clear pathway for private participation in power generation, helping to ease pressure on the national grid while setting regulatory benchmarks that have influenced renewable frameworks elsewhere on the continent.
The report shows that Africa’s solar capacity expanded by 25 percent in 2024, with Southern Africa recording the fastest growth. South Africa remained the region’s largest contributor as utility-scale and private generation projects continued to accelerate.
Investment momentum translated into higher output. In 2024, South Africa led renewable electricity generation on the continent, producing more than 50 terawatt-hours from a mix of hydroelectric power at 10.1 TWh, solar at 8 TWh, wind at 9 TWh, and other renewable sources contributing 27.1 TWh.
Beyond power generation, the report identifies green hydrogen and biofuels as areas of rising interest. South Africa is among a small group of African countries well positioned to supply green hydrogen to export markets, supported by strong solar and wind resources and growing demand from Europe.
Frameworks attract long-term capital
The report highlights South Africa as one of the few African markets with a structured framework that supports sustained energy investment. This includes sector-specific legislation, competitive auctions, net-metering systems, and an independent regulator.
The Integrated Resource Plan 2019 set the foundation by reducing reliance on coal and prioritising wind, solar, and storage technologies. The Energy Action Plan introduced in 2022 further opened the market to independent producers while addressing transmission constraints.
Marais also pointed to the Upstream Petroleum Resources Development Act signed into law in 2024, which signals a shift toward a more predictable investment environment for oil and gas, even as the country expands renewable capacity.
With private generation growing and policy reforms advancing, Marais said boards are increasingly seeking guidance on translating regulatory change into operational projects.
Looking ahead, the report concludes that continued infrastructure investment, combined with regulatory clarity, positions South Africa to diversify its energy mix, strengthen energy security, and attract new capital flows. With a population exceeding 63 million and gross domestic product of about $400 billion, the country remains one of Africa’s most significant energy investment markets.
