Agency Report
Active youth engagement and access to green technology are crucial for African economies to achieve net-zero targets. However, current policy and investment gaps are hindering youth involvement in this area.
- African countries, though they already emit the least carbon, have ambitiously committed to net-zero by 2050, aligning climate action with national development through clean technologies in energy, agriculture, and transport.
- Realising these goals largely depends on building Africa’s green tech sector, incentivising investment, and creating policy frameworks that enable youth participation.
- In the solar mini-grids, e-mobility, and climate-smart agriculture sectors, fragmented governance, lacklustre inter-ministerial coordination, policy incoherence, and exclusion of youth from decision-making currently hinder green tech development, despite some progress through innovation centres and capacity-building initiatives.
- Strengthening policy coherence, inclusivity, and political will, while investing in aligning climate, youth, and development agendas, will be essential to unlocking socio-economic benefits and favorably positioning Africa in the global green technology transition.
Executive summary
As concerns over the global climate grow, a consensus has emerged on the need to achieve net- zero emissions by 2050 in order to avoid irreversible climate impact. African countries, though they emit the least carbon, have set ambitious net-zero targets, and have aligned their decarbonisation plans with national development priorities. These plans are largely based on a significant increase in the deployment and utilisation of clean technology solutions, especially in high carbon-emitting sectors such as energy, agriculture and transport, which together account for over 50% of the continent’s emissions. Developing these solutions to meet the proposed targets sustainably will depend on the pace and scale of the development of Africa’s nascent green tech sector and on harnessing the potential of its youth.
However, this will not be possible without incentivising investment in the green tech sector and implementing a policy, legal and regulatory framework that encourages opportunities for youth participation in its development. A sustainable climate transition in Africa will be dependent on localising green tech development, fostering local resilience and creating opportunities for youth across the green tech value chain. If successful, this promises immediate benefits in terms of socio-economic development and Africa’s participation in the global green tech race. The development of these technologies and the opportunities that accompany them will also curb the increasing level of migration and brain drain of its youth.
This policy brief analyses the enabling environment for green tech development in selected African countries, with emphasis on the opportunities for the continent’s teeming youth workforce. It assesses the policy and regulatory landscape using a combination of top-down and bottom-up policy analysis of solar mini-grids (renewable energy) in Nigeria, e-mobility in Kenya and climate-smart agriculture in Ghana. It identifies areas of alignment, gaps, bottlenecks and opportunities between policies and government plans related to climate, youth, technology and development. The renewable energy, technology and agriculture sectors were chosen for this study due to their identification as Africa’s primary green tech sectors in a scoping report on green tech policies and youth employment. These sectors demonstrate significant potential for both youth employment and entrepreneurship, and are central to green tech research, policies and funded programmes, all of which are interconnected. Nigeria, Kenya and Ghana were selected due to their strong focus on green tech policy and its implementation. This selection aligns with the findings of a technological needs assessment conducted in African countries, which identified solar energy, transport and agricultural technologies as priority areas. Consequently, a thorough understanding of these sectors in these specific countries can offer valuable insights and lessons that can be applied to other countries aiming to develop their green tech sectors. The cross-national and cross-sectoral approach allowed for gathering diverse data on policy trends that influence youth employment outcomes.
The results show that the promotion of green tech is often compartmentalised in specific ministries and that there is inadequate interministerial cooperation. It also indicates policy incoherence, poor planning and misaligned stakeholder interests as underlying challenges in green tech development. The misalignment between youth, climate and development policy targets and goals, overlapping and, at times, conflicting institutional mandates, and multiple points of interface with government all present challenges to green tech advancement on the continent. These policy gaps are worsened by the exclusion of young people from the policy-making process. Furthermore, policy documents usually give gender mainstreaming greater weight than youth inclusion.
This is not to downplay efforts by governments to promote youth participation in green tech development. Many of them recognise its critical significance. Countries such as Nigeria, Kenya and Ghana have set up Climate Innovation Centres to promote the incubation and growth of green tech and have integrated capacity building and technology transfer as part of national climate projects with development partners. They are also increasingly recognising the role of youth in the climate transition in their policies for youth-focused climate initiatives by African countries. However, there is significant room for improvement in the form of a supportive enabling environment to catalyse growth and investment in green tech sectors.
This policy brief describes these sectors and makes recommendations for how the enabling environment specific to the policy and regulatory landscape for green tech development and opportunities for youth can be refined. This will make the environment more inclusive, provide it with stronger political will and ensure policy coherence, coordination and buy-in across the respective governments, as well as alignment with national development goals and climate commitments.
Introduction
As the world grapples with the escalating impacts of climate change, the intersection of green technology (green tech) and Africa’s budding youth potential presents a transformative opportunity for the continent’s climate transition. Africa has a young population, which is projected to exceed 740 million by 2050.1 The continent has the potential to harness this demographic to drive its nascent green technology sector. The global need to achieve net-zero emissions by 2050 has prompted many African countries to set ambitious climate targets which are largely based on the deployment of clean technology solutions, particularly in high carbon-emitting sectors such as energy, agriculture and transport, which collectively account for over 50% of the region’s emissions. Green tech applies scientific knowledge and innovation to create products, processes and services that are climate friendly and resource efficient.2 It encompasses a wide range of innovations aimed at promoting environmental sustainability, including renewable energy, sustainable agriculture and waste management. For example, solar mini-grids, e-mobility solutions and climate-smart agricultural technologies (CSAT) are emerging as key green tech solutions for decarbonising the energy, transportation and agricultural sectors across Africa. These solutions not only contribute to reducing emissions but also create substantial employment opportunities for youth and opportunities for innovation. It is estimated that investments in renewable energy alone could generate 4 million jobs by 2030 across Africa, highlighting the significant role that green tech can play in promoting youth employment.3
The involvement of youth in the green tech sector is vital. Young people bring fresh perspectives and innovative ideas that are essential for driving technological advancements and fostering entrepreneurship. Their familiarity with digital tools and platforms positions them to leverage technology in creating sustainable solutions tailored to local contexts. These are critical in the development of solutions towards the race to net zero. Additionally, youth employment is a prominent theme in Africa’s development discourse, as the continent faces significant challenges in providing productive and decent jobs for its youth. For instance, as of 2023, 53 million youth (one in five, or 29%) in sub-Saharan Africa were NEET (not in employment, education or training). This figure is just above the global youth NEET rate of 20.4%.4 Relatedly, nearly three in four (71.7%) young adult workers (aged 25 to 29) were in the form of work deemed ‘insecure’.5 If developed with the proper youth considerations, green tech can tackle these youth employment problems. It is estimated that 52% of African youth are likely to consider emigrating in the next few years, citing economic hardship as the top reason.6
Green tech in Africa simultaneously addresses the challenges of climate change and employment, while increasing economic productivity. If done right, developing and scaling these technologies will create jobs to address pressing socio-economic challenges while advancing the region’s climate ambitions. This dual focus on climate action and youth employment will position Africa as a global leader in the green economy and address critical development challenges. For instance, Africa’s renewable energy potential is massive: it is home to 60% of the world’s prime solar resources. Yet, due to limited investment in renewable energy and heavy reliance on the Global North for technology, the continent holds only 1% of installed solar PV capacity.7Solar PV, which is already the most affordable power source in many African regions, is expected to surpass all other energy sources continent-wide by 2030.8 Alongside solar, other renewables such as wind, hydropower and geothermal are expected to constitute over 80% of new power generation capacity by the same year.9
This renewable energy boom presents a unique opportunity to integrate green tech with the broader vision of green industrialisation – leveraging renewable energy to drive industrial growth, create jobs and spur economic transformation across the continent. On the other hand, investments in renewable energy are especially impactful in generating employment, creating three times as many jobs per dollar as fossil fuels, according to the Sustainable Energy for All (SE4ALL) Renewable Energy Manufacturing Initiative (REMI).10 This opens up vast opportunities for youth engagement, particularly in the development of renewable energy infrastructure, the manufacturing and maintenance of green technologies, and the operation of renewable-energy-powered industrial parks. The latter have the potential to serve as hubs of productivity and innovation, driving job creation while reducing poverty. However, realising these opportunities requires a conducive policy, legal and regulatory framework that encourages youth participation in the green tech sector. Governments will need to create an enabling environment that incentivises investment in youth development in the green tech sector while addressing barriers such as access to finance and skills development.
This policy brief analyses the policy and regulatory environment for green tech development in Nigeria (solar mini-grids), Kenya (e-mobility) and Ghana (climate-smart agricultural technology). It focuses on coherence, policy gaps and opportunities for increasing youth participation in these countries through a combination of top-down and bottom-up policy analysis. The renewable energy (solar mini-grids), transport and agriculture sectors were chosen for this study due to their identification as Africa’s primary green technology sectors in a scoping report on green technology policies and youth employment.11 These sectors demonstrate significant potential for both youth employment and entrepreneurship, and are central to green tech research, policies and funded programmes, all of which are interconnected. Nigeria, Kenya and Ghana were selected due to their strong focus on green tech policy and its implementation. This selection aligns with the findings of a technological needs assessment which identified solar energy, transport and agricultural technologies as priority areas across Africa.12 Consequently, a thorough understanding of these sectors in these specific countries can offer valuable insights and lessons that can be applied to other countries aiming to develop their green tech sectors. The cross-national and cross-sectoral examination approach allowed for gathering diverse data on policy trends that influence youth employment outcomes. The study identifies areas of alignment, gaps, bottlenecks and opportunities within policies related to climate change and youth engagement and recommends actions to foster a vibrant green tech ecosystem that empowers African youth.
The emerging tech landscape in Africa
Driven by a unique combination of local innovation, international investment and a growing recognition of the need for sustainable practices, the green tech sector in Africa is rapidly evolving. Africa’s abundant natural resources, young population and increasing commitment to sustainable development position the continent to capitalise on green technologies for transformative change.13 This section explores key segments of the green tech market in the context of three sub-Saharan African nations: solar mini-grids in Nigeria, e-mobility in Kenya and climate-smart agriculture (CSA) in Ghana.
Solar mini-grids in Nigeria
In the African energy sector, clean electrification solutions are becoming increasingly popular as a solution for bridging the huge energy access gap. Across the continent, an estimated 600 million people, approximately 53% of the population, live without access to electricity.14 Among these solutions, solar mini-grids stand out as decentralised electrical systems that provide electricity to communities through renewable solar energy technologies. While mini-grids can utilise various energy sources, solar mini-grids specifically harness solar energy and are one of the most common decentralised renewable energy solutions for community electrification. These systems are rapidly emerging as a reliable solution for achieving energy access. Between 2019 and 2021, the number of installed mini-grid connections in Africa nearly doubled, rising from approximately 40,700 to over 78,000.15
The International Energy Agency (IEA) estimates the number of people with access to electricity through a solar home system in sub-Saharan Africa increased by about 25 million since 2019, topping 45 million in 2022.16 Countries such as Kenya and Nigeria lead in the deployment of these solutions in East and West Africa respectively. These decentralised clean energy systems not only provide energy access but also create significant employment opportunities, as well as budding, local, clean energy innovation ecosystems, with hubs such as the World Bank-funded Country Climate Innovation Centres serving green tech development. According to the International Renewable Energy Agency (IRENA), the renewable energy sector alone could create 4 million jobs across Africa by 2030 and 8 million jobs by 2050.17
Nigeria’s energy sector has been constrained by technical and non-technical challenges that have inhibited the delivery of reliable power to its approximately 228 million population. With over 50% of Nigerians without electricity supply access, Nigeria represents Africa’s largest potential market for off-grid electrification. With an unreliable national grid, Nigerians spend an estimated NGN 5 trillion (approximately USD 14 billion) annually on small petrol or diesel generators, which are costly and emit harmful pollutants locally and globally.18
To address this energy access deficit, numerous policies and public–private initiatives are being implemented to encourage investment in the off-grid clean energy sector and promote the adoption of decentralised clean energy solutions. In 2020, the World Bank valued the global off-grid solar market at USD 1.75 billion annually, serving 420 million users.19 In Nigeria, an estimated 20 GW of small diesel-powered generators are in daily operation – five times the capacity of the national grid.20 According to the a USAID report, the annual market potential for off-grid clean energy solutions in Nigeria is USD 8 billion for mini-grids and USD 2 billion for solar home systems.21
Over the past decade, significant efforts by the government and private sector have focused on harnessing Nigeria’s renewable energy potential, particularly in the off-grid sector. Decentralised renewable energy, especially off-grid solar, has demonstrated potential to bridge the country’s energy access gap. A key outcome of this has been a significant increase in the number of opportunities across the value chain for green tech development for electrification, with the deployment of solar mini-grids being one of the most common. Nigeria’s off-grid sector is now recognised as the largest commercially viable and fastest-growing energy access market globally, accounting for over 50% of solar appliance system (SAS) sales in West Africa and driving regional growth.22
This has led to a boom in locally grown clean tech companies led by young entrepreneurs. There are now over 200 local and international solar companies active in the country, up from fewer than 20 a decade ago.23This growth has also created a whole new job market across the value chain for hard skills such as installation, maintenance, sales and R&D, and soft skills such as clean energy finance, energy law, consultancies, and gender and social inclusion. This success is largely driven by the private sector, supported by government initiatives to improve the enabling environment.
E-mobility in Kenya
In Kenya, the transport sector, particularly road transportation, is one of the main sources of CO2 emissions. This is due to the predominant use of fossil fuels for internal combustion engines (ICEs). To ensure a sustainable future for transportation globally, African nations are increasingly embracing e-mobility, which involves the use of electric vehicles (EVs) as a sustainable alternative to traditional fossil fuels. The adoption of e-mobility is expected to significantly reduce greenhouse gas (GHG) emissions from the transportation sector in sub-Saharan Africa, potentially cutting emissions by up to 24% by 2040.24 The e-mobility industry in Ethiopia, Kenya, Nigeria, Rwanda and Uganda is expected to grow significantly, with projections suggesting that EV sales could reach 340,000 to 820,000 units by 2025 and expand to 3.8 to 4.9 million units by 2040.25Electric two-wheelers are expected to play a pivotal role in this growth, driven by their affordability and manoeuvrability.
In Africa, there is growing interest from both governments and the private sector in leveraging renewable energy to boost the expansion of e-mobility. This interest has also led to significant investments in e-mobility infrastructure. In East Africa, countries such as Kenya, Tanzania and Uganda have introduced new policies with tax incentives to promote the adoption of e-mobility. For instance, Kenya aims to achieve its transport sector goal of reducing emissions by 3.46 MtCO2e against the baseline in 2030.26 To this end, the country has launched government initiatives that promote EV uptake through publicity campaigns and incentives for buyers. Additionally, it has introduced a reduced EV charging electricity tariff and exempts e-motorcycles, e-buses and e-bicycles from VAT.
Kenya’s transportation sector is evolving rapidly in accordance with growth in the deployment of electric-powered two-, three- and four-wheelers throughout East Africa. As of 2022, electric buses and taxis have become an integral part of Nairobi’s public transport system. With an estimated 350 EVs registered in Kenya, these developments underscore the emergence of a nascent e-mobility market on the continent.27 The market has seen the recent entry of over 50 startups led by young CEOs, with USD 26 million in new funding in 2021.28 This budding and vibrant e-mobility startup scene is driving a transition in the transport sector from ICE to e-mobility solutions. This is largely due to the enabling environment and public–private partnerships (PPPs) that have been crucial in providing finance and technical assistance.
Kenya is actively advancing its e-mobility sector through several ongoing programmes and initiatives. The government, in partnership with development partners, is developing knowledge products to build public interest in e-mobility. These include fact sheets and brochures that provide insights into Kenya’s progress in e-mobility, highlight key developments and address common questions. The following points summarise the key initiatives of the Kenyan government.
- Public and private sector engagement: Continuous engagement between public and private stakeholders is underway to identify barriers to e-mobility adoption and implement corrective measures. This collaborative approach aims to foster a supportive environment for EVs.
- Policy incentives: The Kenyan government has introduced policy incentives to encourage the adoption of EVs. For instance, in the Finance Bill of 2019, the excise duty on EVs was reduced from 20% to 10%. Additionally, the Kenya Bureau of Standards, with support from partners like Germany’s GIZ and the UN Environment Programme, has developed and adopted 21 standards for EVs, covering safety, performance and power consumption.29
- Pilot projects: Pilot projects are being conducted in collaboration with organisations like the UN Environment Programme. For example, a pilot involving the deployment of 50 electric motorcycles in Kisumu aims to test and refine e-mobility solutions in urban settings. Kenya Power is also involved in these initiatives, focusing on expanding EV charging infrastructure across the country.30
- Targets and ambitions: Kenya aims for at least 5% of all registered vehicles to be electric by 2025. To support this goal, the government is working to establish a comprehensive e-mobility framework, including regulations and infrastructure development. With over 90% of Kenya’s electricity coming from renewable sources, the country’s transportation sector is well positioned to make the clean energy transition.31
Climate-smart agriculture in Ghana
Driven by innovative and sustainable practices, the agriculture and food security sector is undergoing a significant transformation. Climate-smart agriculture (CSA) is a key focus, incorporating techniques such as agroforestry, improved soil management and efficient water use to boost productivity and resilience to climate change impacts.
The Food and Agriculture Organization (FAO) defines CSA as ‘agriculture that sustainably increases productivity, enhances resilience (adaptation), reduces/removes GHGs (mitigation) where possible, and enhances achievement of national food security and development goals’.32 CSA therefore involves adopting technologies, practices and policies that help farmers optimise their inputs and outputs while managing climate-related disruptions. This approach spans the entire agricultural value chain – from planting and harvesting to storage, preservation, marketing and agro-processing. For example, solar-powered irrigation systems improve planting efficiency, solar dryers enhance preservation, digital technologies aid in crop monitoring to boost yields and weather-index insurance protects against droughts or floods.
CSA has been actively promoted among Ghanaian farmers as a means of adapting to climate change. The key benefits reported include improved soil fertility, higher yield, improved household income, climate resilience (such as overcoming the effects of drought and extreme temperatures) and food security. Ghana is also pioneering the use of blockchain technology for land digitalisation, which helps farmers access credit and improve land management. These innovations enhance agricultural productivity and contribute to sustainable development by reducing the environmental footprint of farming practices. These developments are not only crucial for reducing GHG emissions but also play a vital role in driving sustainable technological development in the region, creating jobs for youth and catalysing much-needed investment in Africa’s green tech sector. However, challenges such as the lack of government support and credit access, as well as high illiteracy rates among smallholder farmers, hinder broader adoption.
The Ghanaian government has initiated several key CSA initiatives as part of its national development agenda. These initiatives are outlined in the Climate-Smart Agriculture Investment Plan (CSAIP), developed under the Adaptation of African Agriculture (AAA) programme. The following points summarise the key initiatives of the Ghanaian government.
- Development of the CSAIP: This plan aims to boost crop resilience and enhance yields for nearly 1.7 million beneficiaries and their families, helping them adapt to climate change. The plan was developed through strong government partnership and stakeholder engagement, with funding and technical support from the World Bank.
- Prioritised investments: Stakeholders have identified and prioritised a set of nine investments and actions needed to enhance crop resilience and yields. These investments were selected from an initial list of 22 proposed CSA priorities through an iterative, qualitative and quantitative prioritisation process.
- National and regional investments: The CSAIP includes two national-scale investments and seven regional climate-smart crop and animal investments. National investments focus on providing information, capacity building, infrastructure and national-level services to enable CSA practices across Ghana. Regional investments are tailored to enhance productivity, adaptation and resilience, and to reduce GHG emissions in specific crops and animals across different regions.
- Stakeholder engagement and capacity strengthening: The development process of the CSAIP involves extensive stakeholder engagement, including government ministries, institutions, research organisations, farmer groups and international development organisations. This engagement supports capacity strengthening and provides key elements for programme design and implementation.
- Climate modelling and impact assessment: Climate modelling has been used to assess the potential impacts of climate change on key crops. For example, maize is projected to experience significant yield losses, while crops like rice and tubers show fewer impacts. Investments are focused on promoting practices that support climate-resilient crops.
- Promotion of CSA practices: The government promotes CSA practices that support resilience, particularly for crops like cacao which are crucial for Ghana’s economy. Investments are also aimed at enhancing yields and reducing GHG emissions in livestock and other crops.
Assessment of policy and regulatory landscape
The purpose of legal, regulatory and policy frameworks is to guarantee that businesses operate equitably and openly while also ensuring the protection of consumers against any potential harm. Importantly, these frameworks enable more investments and catalyse opportunities for entrepreneurs, innovators and business ecosystems to develop and thrive. A focus and analysis on policy and regulations related to innovation ecosystems is essential to effectively tackle the obstacles and difficulties that impede the development and dissemination of green technology, such as limited access to finance, skills, markets, information and technology. Principal actors within regulatory frameworks include policymakers, regulators and other entities responsible for implementing regulatory functions.33 These actors coordinate to promote coherence as a foundation for green growth.34This involves incorporating the priorities of youth employment and green jobs into broader national economic development plans at all levels.
To understand the green tech and youth employment policy landscape, this policy brief utilises top-down and bottom-up approaches to policy analysis. These two approaches are commonly used in policy analysis to comprehend and evaluate policies, programmes or initiatives. Specifically, we focus on the goals of the policies in relation to green tech and youth employment. This requires a multi-goal analysis, which assumes that policies are intended to fulfil certain stated goals which may sometimes be vague and/or communicated in terms that are not amenable to precise measurement.35
Policy tools are essential for guiding international efforts and facilitating the implementation of climate change mitigation and adaptation strategies. Following the United Nations Framework Convention on Climate Change (UNFCCC) policy tools category, the chosen policy instruments were limited to supportive actions and regulatory instruments. This was because many green tech sectors in Africa are new and often require novel regulations, technologies and standards, thereby eliciting government efforts to institute benchmarks and provide supportive action for research and innovation.
The coherence of policies for this analysis was assessed using the following approach:
- The identification of relevant policies and strategies that relate to the policy tools for green tech (solar mini-grids, e-mobility and climate-smart agriculture,) and youth employment for the three countries (Nigeria, Kenya and Ghana).
- Evaluation of the extent to which selected policies align with each other and with the development and creation of green jobs for youth.
- Examination of how the selected policies interact with each other, especially green tech policies and national youth employment policies, to produce intended or unintended effects.
Here we provide an overview of the policy and regulatory landscape in Nigeria, Kenya and Ghana.
Nigeria
The Rural Electrification Agency (REA) of Nigeria, established in 2005 under the Electric Power Sector Reform Act, serves as an implementing agency of the Federal Government, operating under the Federal Ministry of Power. Its primary mission is to provide reliable electricity to rural and unserved communities across Nigeria, a country with a population of approximately 214 million, of whom only about 60% have access to electricity.36 The REA’s work includes the implementation of programmes like the Nigeria Electrification Project (NEP), which focuses on providing electricity to households; micro, small and medium enterprises (MSMEs); educational institutions; and healthcare facilities using distributed renewable energy solutions.
Additionally, the agency supports initiatives such as the Energizing Education Programme (EEP), which aims to electrify universities and teaching hospitals with solar hybrid power systems, enhancing academic excellence and gender inclusion in STEM (science, technology, engineering and mathematics) fields. Through these efforts, the REA is committed to creating a sustainable future for Nigeria by increasing access to clean energy, reducing energy poverty and promoting economic development in rural communities. The combination of regulatory frameworks, energy policy, national strategies and programmes, international donor commitments, and foreign and indigenous investment together create the enabling environment for increased investments, technical support, improved quality standards and simplified end-user payments in Nigeria’s off-grid sector. Culled from Africa Policy Research Institute