Energy experts have urged Nigeria and other African countries to link investments in renewable energy to industrial growth, local manufacturing and job creation, warning that the continent could miss the economic benefits of the global energy transition if it continues to depend on imported technologies.

They said renewable energy investments must go beyond expanding electricity generation to powering industries, strengthening indigenous businesses, developing technical skills and creating regional supply chains capable of retaining economic value within Africa.

The experts spoke on Thursday at the inaugural Energy Transition Africa (ETA) 2026 Colloquium, held virtually, where policymakers, energy practitioners and researchers examined the theme, “Transition or Transformation? What Will the New Energy Economy Mean for Africa’s Development?”

They argued that the real measure of Africa’s energy transition should be its contribution to industrialisation, productive employment, affordable electricity and improved livelihoods, rather than the volume of investments attracted or renewable energy installations completed.

Opening the discussion, Head of Policy Planning and Strategy at the African Energy Commission of the African Union, Yagouba Traoré, said African countries must harness their abundant energy resources to build domestic industries instead of remaining exporters of raw materials and consumers of imported technologies.

Traoré noted that nearly 600 million Africans lacked access to electricity, while close to one billion relied on firewood, charcoal and kerosene for cooking, underscoring the scale of the continent’s energy access challenge.

He said Africa’s solar, wind, hydropower and geothermal resources presented opportunities to accelerate industrialisation, provided governments prioritised local manufacturing, mineral processing, technical education and domestic financing.

According to him, the continent must develop regional value chains for clean energy technologies, strengthen technology transfer arrangements and equip young Africans with the skills to participate in the emerging energy economy.

Traoré disclosed that the African Energy Commission had developed an African Energy Transition Strategy and Action Plan, adopted by African heads of state and government in February 2026, with a long-term vision of a low-carbon economy by 2063.

In her featured address, Executive Director of Governance and Sustainability at Sahara Group, Ejiro Gray, said renewable energy investments would deliver meaningful economic transformation only when they strengthened local productive capacity and supported industrial development.

Using Nigeria’s power sector as an example, Gray cited Egbin Power, First Independent Power and Ikeja Electric as examples of efforts to develop local expertise, strengthen indigenous management and increase domestic procurement.

She said Egbin Power had an installed generating capacity of 1,320 megawatts and supplied more than 16 per cent of electricity delivered to Nigeria’s national grid, while First Independent Power had a capacity of 721 megawatts.

Gray identified skilled manpower, competitive local suppliers, technology development, productive use of electricity and access to capital supported by sound governance as essential to converting energy investments into industrial growth.

She stressed that local content policies must be accompanied by deliberate efforts to build the capacity of Nigerian businesses to compete internationally, rather than rely indefinitely on regulatory protection.

Gray urged policymakers and investors to assess energy projects by the number of indigenous businesses, skilled professionals and industries they create, while cautioning against treating gas and renewable energy as mutually exclusive.

She said reliable electricity for industrial development must be pursued alongside renewable energy expansion, energy storage and stronger transmission and distribution networks.

Founder and Executive Director of Rabia Transitions, Dr Chantal Naidoo, identified financing arrangements as a major constraint to Africa’s ability to translate energy investments into industrial development.

Naidoo argued that existing international financing structures often left African governments carrying disproportionate risks while foreign investors retained much of the commercial value generated by projects.

She estimated that Africa required approximately $217 billion annually to finance renewable energy generation, distribution infrastructure and universal electricity access, but received only a fraction of the investment needed.

She called for more grants and concessional financing to support vulnerable communities through energy reforms, as well as regional financing arrangements that combine commercially viable projects with public grid expansion and local manufacturing.

Naidoo also urged African governments to strengthen their negotiating capacity and work through regional institutions to secure financing terms that reflect their development priorities and economic realities.

“Acknowledging dependency is not an admission of weakness. It is the starting point for strategic collective power,” she said.

For Nigeria, Deputy Director of the Planning, Research and Development Department at the Rural Electrification Agency (REA), Dr Bala Tyoden, said households and businesses were already driving the energy transition as they sought alternatives to unreliable grid electricity and expensive fossil fuels.

Presenting an address prepared by the agency’s managing director, Tyoden said Nigerians spent an estimated N16.5 trillion on petrol, diesel and generators to provide their own electricity in 2023.

He, however, warned that the growing adoption of solar systems would not automatically produce economic transformation unless the technologies became more affordable and supported productive activities.

Tyoden cited a mini-grid project in Namu, Plateau State, where women processing rice and cassava benefited from electricity access, as an example of how renewable energy could support small businesses, improve productivity and strengthen rural economies.

He said electricity projects should be designed around the needs of local enterprises and agricultural value chains, while adequate maintenance and asset management arrangements were necessary to sustain their benefits.

According to him, the REA was developing a model through its proposed Renewable Asset Management Company to support the long-term sustainability of renewable energy assets after existing private-sector agreements expire.

Meanwhile, Policy Lead for Minerals and Mining Policy at the Africa Centre for Energy Policy, Maybel Acquaye, urged African governments to integrate renewable energy investments with agriculture, local supply chains and manufacturing.

Using Ghana as an example, Acquaye highlighted efforts to promote ethanol as an alternative clean cooking fuel, saying local production could reduce import dependence while creating jobs in agriculture, distribution, cookstove manufacturing and maintenance.

She also advocated solar-powered irrigation for smallholder farmers, arguing that the technology could improve agricultural productivity, reduce dependence on unpredictable rainfall and strengthen food security.

On critical minerals, Acquaye said African countries should move beyond processing minerals to developing indigenous businesses that provide engineering, construction, equipment and maintenance services to mining operations.

She called for greater investment in research, technical education and vocational training, while recommending that tax incentives for investors be tied to measurable commitments on skills development and technology transfer.

Acquaye further urged African countries to leverage the African Continental Free Trade Area to develop complementary industrial capabilities and regional supply chains rather than attempt to manufacture every product independently.

Other contributors highlighted the importance of financing clean cooking projects, involving communities in renewable energy investments and strengthening electricity distribution and maintenance systems.

Kenyan energy expert Edward “Teddy” Odindo called for governments to complement clean cooking targets with bankable projects capable of attracting investment and delivering measurable results.

South African communications and social impact strategist Nozuko Poni said communities must understand how energy projects operate, who owns them and how benefits are distributed, stressing that financial investment alone could not guarantee community participation or ownership.

In Nigeria, Damilola Olowookere of the PIND Foundation highlighted opportunities to link development funds for oil-producing communities with renewable energy developers to finance electricity projects in underserved coastal and riverine areas.

Liberian energy sector expert Kemoh Lumei warned that unreliable electricity distribution, delayed repairs and shortages of maintenance materials could undermine the benefits of increased power generation.

In his closing remarks, ETA Board Chair Monday Osasah congratulated the 14 fellows who completed the inaugural 11-week programme, selected from an initial pool of 231 applications across eight African countries.

He urged the fellows to use their research to inform public debate, support communities and challenge policies that failed to advance the public interest.

Osasah said Africa’s energy transition must ultimately be judged by its contribution to economic development, the opportunities it creates and its impact on people’s lives.