SA Ghana Kenya: Report Reveals Renewable Energy Investment Barriers

• Renewable energy sectors in South Africa, Ghana, and Kenya face significant growth barriers despite high demand.
• Key impediments include unstable demand, limited localization enforcement, and deficits in decent job creation and gender equity.
• Public procurement programs, while boosting capacity (e.g., SA >7GW, Ghana 5.3GW, Kenya 2.6GW), suffer from intermittent cycles.
• This intermittency creates substantial investment uncertainty, hindering expansion and the development of a robust local manufacturing sector.
• A four-year study by the Institute for Economic Justice highlighted these challenges across the three nations.

The inconsistent and intermittent nature of these procurement cycles creates substantial African renewable energy procurement uncertainty for investors and developers, undermining long-term planning and expansion efforts crucial for sustained growth.

Despite considerable demand, the renewable energy sectors in South Africa, Ghana, and Kenya are not reaching their full potential. A comprehensive four-year study, conducted by the Institute for Economic Justice and its partners across these three nations, has identified several critical impediments. These research reports collectively highlight that unstable demand, coupled with insufficient enforcement of localization requirements, significantly hampers the growth trajectory of these vital sectors.

Furthermore, the study points to broader societal challenges, including a notable shortfall in creating decent employment opportunities and the persistence of deep-seated gender biases, which further constrain sector development. These findings underscore that while the potential for renewable energy is high, systemic issues are preventing its full realization in these key African economies.

Public procurement has historically played a pivotal role in stimulating the renewable energy sector across these countries. Specific governmental initiatives include South Africa's Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), Kenya's Energy Act of 2019, and Ghana's 2021 National Energy Policy alongside its Renewable Energy Act of 2011, which was subsequently amended in 2020. These frameworks have demonstrably boosted installed capacity, with South Africa achieving over 7GW, Ghana reaching 5.3GW, and Kenya accumulating 2.6GW.

However, a significant challenge arises from the inconsistent and intermittent nature of these procurement cycles. This creates substantial African renewable energy procurement uncertainty for investors and developers, undermining long-term planning and expansion efforts crucial for sustained growth. The fluctuating commitment to procurement rounds introduces a high degree of risk, deterring necessary capital injection into the sector.

The identified barriers, particularly the fluctuating demand and the limited enforcement of renewable energy localisation enforcement Africa, directly impede the potential of these renewable energy sectors. This situation prevents many African nations from fully capitalizing on the increasing global demand for renewables to build a robust domestic manufacturing base capable of generating quality jobs. The Institute for Economic Justice renewable report emphasizes that without stable demand and effective localization, the economic benefits of renewable energy development remain constrained.

Moreover, the reports also underscore ongoing challenges related to decent work creation, entrenched gender biases, care responsibilities that restrict women's entry, and their continued marginalization within the sector. These issues, alongside REIPPPP investment challenges, Kenya Energy Act 2019 renewable issues, and Ghana renewable energy policy gaps, present substantial SA Ghana Kenya renewable energy investment barriers, affecting both economic development and social equity across the region.

Lawyers advising renewable energy investors in South Africa, Ghana, and Kenya must scrutinize procurement stability and localization enforcement risks, as intermittent cycles and policy gaps create significant investment uncertainty and project viability challenges. This necessitates thorough due diligence on regulatory frameworks and potential policy shifts impacting long-term project viability.

Source: Original reporting via Daily Maverick, published by AllAfrica.