Commercial lenders are increasingly waking up to Africa’s fast-growing solar sector, as the continent shifts towards renewable energy. ImpactAlpha reports that Africa’s solar industry has grown at a staggering 20% annual rate over the past five years, driven by declining solar panel costs, government initiatives, and a growing need for energy. As a result, investors are eager to tap into this trend, with commercial lenders looking to capitalize on the growth potential. According to BloombergNEF, Africa’s solar sector is expected to reach 1.6 gigawatts of new capacity additions by 2025. This surge in demand has led to an influx of international investors, including those from Europe, Asia, and the United States, who are partnering with local developers to develop solar projects. With government support, tax incentives, and competitive pricing, commercial lenders see Africa’s solar sector as a lucrative investment opportunity, poised for exponential growth and returns. As the African solar market continues to soar, commercial lenders are betting big on the continent’s renewable energy potential.
