By Uhabia Ojike, Lead Energy & Infrastructure, Forvis Mazars, Africa and Country Leader, Forvis Mazars in Nigeria

Africa’s energy challenge is not a shortage of resources; it is our inability to consistently convert those resources into reliable, affordable power at scale. Closing this gap between availability and delivery has become critical to the continent’s economic growth, industrialisation and competitiveness.

The continent’s critical minerals, oil, natural gas, coal and renewable energy sources also position Africa as a key player in global energy markets. However, to unlock this potential, we must proffer practical solutions to the risks, regulatory hurdles and financing constraints that continue to limit investment and delivery.

Africa’s resource paradox

According to the Forvis Mazars "Powering Africa’s Future" Energy Report, Africa holds nearly 10% of the world’s oil reserves, 8% of natural gas, and significant coal deposits. The continent also boasts an abundance of critical minerals, holding roughly 30% of global reserves. Yet despite this extraordinary resource wealth, Africa remains the least electrified continent in the world.

From a renewable energy standpoint, the Sahara’s solar potential exceeds 10,000 GW, and its hydropower capacity could surpass 350 GW. However, the reality facing Africa stands in stark contrast to the immense potential of the continent's energy landscape.

The Forvis Mazars Energy Report highlights this gap clearly: despite significant oil, gas and renewable resources, nearly 600 million Africans still lack access to electricity, with rural access in some areas falling below 20%.

Energy costs are high, with households spending up to 15% of income on electricity, compared to less than 5% in developed countries.

Regulation, finance and bankability

Many countries have established frameworks and reform programmes to attract foreign investment, develop infrastructure and strengthen local participation. However, implementation remains inconsistent, with 58% of stakeholders citing challenges in implementation and enforcement, and more than half highlighting financing and infrastructure gaps as key barriers.

Addressing these issues is critical to unlocking private capital and moving projects from concept to financial close. Regulatory frameworks must therefore improve transparency, predictability, and investor protection, while stronger governance and political stability remain essential to securing long-term investment.

This alignment is critical because technically sound projects on the continent that attracted significant investor interest have failed to reach financial close because of uncertainty around tariff structures, land rights or long-term policy consistency.

Investors can price risk, but they struggle to invest where the rules of the game are unclear. In many instances, improving project preparation and execution discipline would have a greater impact than creating new policies.

Charting a transition pathway

A structured transition pathway is equally important. The report positions natural gas as a key transition fuel, supporting industrialisation, grid stability, clean cooking, and both domestic and export energy needs, while renewables remain central to long-term sustainability, as these projects offer opportunities for local jobs, industrial development, energy access, green hydrogen, and critical mineral value chains.

At the same time, scaling renewables will depend on solving challenges around financing, grid integration, infrastructure modernisation, and environmental management, particularly as emissions pressures rise and the continent works to meet climate goals while expanding universal energy access.

Africa's energy transition cannot simply replicate models developed elsewhere. It must reflect the continent's developmental realities, energy access needs and industrial ambitions.

Experience gained from working across energy markets affirms that communities care less about whether electrons come from gas, solar, hydro or wind, and more about reliability. Businesses need power to run factories, hospitals need electricity to save lives, and students need energy to study after dark. The transition debate is important, but access and reliability must remain at the centre of every policy decision.

Turning constraints into competitive advantages

For Africa to capitalise on its resource and human capital dividends, leaders must reframe these challenges as opportunities for innovation and growth.

Already, energy shortages are prompting investment in renewables and energy-efficient systems. Firms are also leveraging mobile-first platforms and digital tools to bypass connectivity issues and streamline logistics.

Sustainability is increasingly becoming a commercial imperative rather than simply a compliance requirement, with many leaders viewing environmental, social and governance (ESG) requirements as an opportunity.

The creativity emerging across the continent is encouraging. In some markets, businesses that once relied entirely on diesel generation are adopting hybrid energy solutions that combine solar, battery storage and gas generation. What began as a response to unreliable power has become a competitive advantage through lower costs, improved resilience and stronger sustainability credentials. These examples demonstrate that necessity often becomes a catalyst for innovation in Africa.

Delivering on Africa’s potential

The call to action is clear: Africa must move from resource potential to bankable, investable and executable energy projects. That will require stronger regulatory execution, better project preparation, deeper private sector participation and coordinated regional infrastructure planning.

If policymakers, investors and industry leaders focus on regulatory certainty, stronger project preparation and practical public-private collaboration, Africa can significantly narrow its energy access gap.

Public-private partnerships and regional initiatives must be used deliberately to expand energy access, integrate markets and turn Africa’s resource strength into reliable power for households, businesses and industry.

The most important lesson is this: Africa's future will not be determined by the resources it possesses, but by its ability to convert those resources into tangible outcomes. Energy delivery, not resource availability, will ultimately power Africa's next phase of growth.

With its entrepreneurial talent, growing investor interest and a renewed commitment to reform, Africa’s opportunity is clear. The continent does not need to discover new resources to succeed. It needs to execute more effectively on the resources it already has. By closing the gap between potential and delivery, Africa's energy story can become one of the world's greatest development successes.