The renewable energy dilemma: Who benefits from Africa’s green transition?

Abstract

Africa’s renewable energy transition promises to be a game-changer—not just for the continent but for the global fight against climate change. With vast solar, wind, and hydropower potential, Africa could drive its own development while supplying clean energy worldwide. Yet beneath this green vision lies a troubling paradox: while foreign investors and multinational corporations reap massive profits, local communities often see little benefit beyond temporary labor and land leases. This paper examines who truly profits from Africa’s renewable energy boom, revealing a landscape where neocolonial economic patterns persist under the moral guise of sustainability. Through an analysis of financial flows, ownership structures, and policy frameworks across key projects—from Egypt’s Benban Solar Park to South Africa’s Cookhouse Wind Farm—we expose how the current model systematically disadvantages African stakeholders. Foreign entities capture up to 80% of economic value, while local job creation remains minimal and technology transfer disappointingly rare. Yet there is hope. Case studies from Namibia and Bangladesh show that enforceable local content policies, community ownership models, and South-South partnerships can shift this dynamic, ensuring renewable energy becomes a tool for empowerment rather than extraction. This paper not only diagnoses the problem but offers a bold roadmap for reform—prioritizing energy sovereignty, equitable value distribution, and industrial transformation. For policymakers, investors, and activists alike, the stakes could not be higher: will Africa’s green transition repeat old injustices, or will it finally break the cycle of resource exploitation? The answer will shape not just the continent’s energy future but the very meaning of climate justice in the 21st century.