Yemisi Izuora
African companies active in off-grid solar sector raised just $9.9 million in 2025, an 81 per cent drop from 2024 and 88 per cent below the $84.6 million they secured in 2023.
The figure is contained in a report published June 11 by industry association GOGLA.
The Association said the trend does not reflect a lack of local operators but rather structural barriers to accessing capital.
According to GOGLA, minimum investment thresholds, transaction costs and investor risk criteria tend to favor more established companies.
The finding echoes analysis by the International Energy Agency (IEA). In its report Financing Electricity Access in Africa, published October 20, 2025, the Agency said average equity investment sizes for early-stage and growth-stage companies stand at around $6.5 million, a threshold often beyond the reach of many African firms.
The IEA also noted that mature players continue to attract the bulk of capital, particularly to finance expansion or consolidation activities such as mergers, acquisitions and efforts to strengthen market positions.
GOGLA’s data show that total investment in the sector remained broadly stable at $315 million in 2025.
The number of companies receiving funding, however, fell from 97 to 57 in a single year, while the number securing first-time financing dropped from 52 to 25. Grant activity also declined sharply, with the number of grants awarded falling from 88 to 28 transactions.
GOGLA said the 2025 figures indicate growing financial sophistication among the sector’s leading players, while access to capital is becoming increasingly restricted for most operators. The association added that the challenge is no longer to demonstrate the viability of off-grid solar but to ensure financing structures are capable of supporting the sector’s broader ecosystem.