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Data Centers Could Be the Spark Africa’s Power Sector Needs (By NJ Ayuk)

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The growth of data centers also often brings with it a push for innovative power solutions, including the integration of renewable energy sources and advanced grid management technologies

JOHANNESBURG, South Africa, December 30, 2025/APO Group/ —By NJ Ayuk, Executive Chairman, African Energy Chamber (https://EnergyChamber.org/).

A quarter of the way into the 21st century, digital technology has infiltrated the daily lives of billions of people to an incredible degree across the globe — but not everywhere… yet. As digital penetration rapidly nears 100% in many parts of the world, the fastest-growing markets are in developing countries where even simple electricity is hardly an assured thing. Perhaps the greatest potential is in the African market, where penetration remains shallow and demand is skyrocketing. Simply put, there’s nowhere to go but up.

Although electrification has been stubbornly slow to spread across the continent thus far, internet usage is expanding at extraordinary rates. The Global System Operators and Manufacturers Association’s (GSMA) Mobile Economy Report 2023 estimated that smartphone adoption in sub-Saharan Africa would rise from 51% in 2022 to 87% in 2030, driven by rising youth populations and more competitive mobile pricing. The same report predicted a near-quadrupling of data usage per mobile by 2028, from 4.6 GB per user per month to 18 GB. Every one of those phones that loads a search engine, a shopping site, or a business app these days is adding to that computing load, and that’s just the mobile sector. Advances in financial technology are creating new opportunities for African businesses to thrive, and artificial intelligence is fast invading every facet of the internet. Generative AI and machine learning applications consume up to 10 times more energy than traditional searches, making all that growth orders of magnitude more expensive.

So far, data centers in Europe have mostly been able to handle Africa’s needs. As African businesses and consumers increasingly demand faster speeds and lower latency, however, the need is quickly growing for more localized computing infrastructure. As of mid-2025, Africa has 223 data centers spread across 38 countries — less than 0.02% of the world’s total of more than 11,800. South Africa has the most with 56, followed by Kenya with 19 and Nigeria with 17, meaning 41% of Africa’s data center infrastructure is currently concentrated in these three countries.

In “The State of African Energy: 2026 Outlook Report,” the African Energy Chamber (AEC) posits that development of cloud infrastructure in these key markets could serve as nuclei to accelerate growth across the continent. Growing concerns over data sovereignty are also spurring some nations to require that certain sensitive data stays in-country, further driving demand for local data centers. The African data center market was valued at USD3.49 billion in 2024 and is projected to reach USD6.81 billion by 2030, rising at a Compounded Annual Growth Rate (CAGR) of 11.79%.

As a rule, data centers require a substantial and reliable supply of electricity — something Africa is not currently known for, with many countries facing frequent outages. Nigeria is a prime example. The country’s 17 data centers — the third most in Africa — collectively require around 137 MW of power capacity in 2025. Nigeria’s power grid is notorious for providing only around four hours of power per day, forcing data center operators to make up the difference with diesel generators that raise costs and pollution levels. Even around the capital city of Lagos, where internet connectivity is highest and 14 of the data centers are concentrated, the grid is a constant source of uncertainty.

Electrification in Africa is a multi-pronged issue with many obstacles on the path to modernization, but there is no doubt that there is a demand to be met

Overall, the AEC report states, Africa’s data center power demand capacity is forecast to achieve a CAGR of 9% between 2024 and 2030 and hit 2 GW by 2030. The total data center capacity globally, by comparison, is forecast to log a CAGR of 11% between 2024 and 2030, reaching 249 GW by year-end 2030. Adding in the power needed for cooling and other ancillary loads, the global total installed capacity is estimated at 374 GW by 2030.

The relentless demand of data centers, however, functions as a great stabilizer for attracting socially responsible capital investment in the power infrastructure. Predictably growing demand assures investors that money spent on expanding grids and developing new power generation centers will both improve lives and pay off economically. The growth of data centers also often brings with it a push for innovative power solutions, including the integration of renewable energy sources and advanced grid management technologies. Upgraded grids improve sustainability, bolster resilience, and expand the residential and commercial customer base, spreading out fixed costs and thereby reducing end users’ electricity prices over time.

In northern Africa, growing hubs such as Egypt and Morocco benefit from strategic positioning that connects Europe, Africa, and the Middle East to major internet backbone lines. Egypt offers affordable land and electricity prices, while Morocco is rapidly modernizing its infrastructure and fostering a favorable legal environment for data center growth.

Sub-Saharan Africa faces more challenges, but even here, many nations are stepping up efforts to meet the insatiable demand. In South Africa, the largest market, there is particularly strong demand for facilities around Johannesburg and Cape Town. Johannesburg benefits from a diversified mix of wholesale and retail demand and both international and local providers. South Africa is leading the continent in solar integration, with public-private projects like the 12 MW solar farm being developed by Africa Data Centres and Distributed Power Africa.

Kenya’s grid is already over 60% renewable, including geothermal, solar, wind, and hydroelectric sources. The Naivasha geothermal zone, which supplies nearly half of the country’s power, will host a planned 100 MW green data center, backed by a USD1 billion investment by Microsoft and G42. Such clean, non-intermittent power solutions give Kenya the ability to support data centers with both lower emissions and greater stability. The Kenyan government also offers tax incentives for investments in special economic zones, including a 10% corporate tax exemption for the first 10 years, and over 15% after 10 years.

Smaller countries are getting in on the game as well. Côte d’Ivoire (currently home to six data centers) launched its largest solar power plant in Boundiali in June 2023, delivering 37.5 MWp of capacity toward its national goal of sourcing 45% of its electricity from renewable energy by 2030. West Africa’s largest wind project is the Taiba N’Diaye Wind Farm in Senegal (seven data centers), while Gabon (one data center) is actively developing hydropower and attracting investment in solar hybrid systems.

Not every country will be able to confront the growing digital demand equally. Data centers are notoriously water-hungry due to the need to cool off huge banks of closely packed computers. Nations with vast areas of desert and savannah can ill afford to have data centers compete for water with agriculture and may have to rely on their neighbors through the use of regional power pools as suggested in the AEC report. Others with fewer renewable energy prospects will likely focus on developing more conventional energy sources such as oil and gas, which many have in great abundance. Even those with strong renewable sectors would be wise to develop conventional energy to achieve the reliability that other parts of the world take for granted. The AEC has long advocated the flexibility of natural gas to serve as a bridge fuel, alleviating shortages with quick ramp-up and ramp-down when renewable supplies fluctuate.

Electrification in Africa is a multi-pronged issue with many obstacles on the path to modernization, but there is no doubt  that there is a demand to be met. Building and provisioning local data centers is a powerful step toward solving some of government’s most pressing problems in any nation: improving infrastructure, growing the economy, and strengthening national security.

“The State of African Energy: 2026 Outlook Report” is available for download. Visit https://apo-opa.co/48Y4qkH to request your copy.

Distributed by APO Group on behalf of African Energy Chamber.

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U.S.-Africa Energy & Minerals Forum Expands to Critical Minerals and Supply Chain Security

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4 days ago

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February 27, 2026

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Africa

This year’s U.S.-Africa Energy & Minerals Forum in Houston signals a strategic shift toward integrated energy and critical minerals investment, strengthening U.S. partnerships across Africa’s resource and industrial value chains

HOUSTON, United States of America, February 26, 2026/APO Group/ –The U.S.-Africa Energy & Minerals Forum (USAEMF) has relaunched with a dedicated focus on critical minerals, marking an important evolution in its role as a platform for U.S.-Africa commercial engagement. Building on its foundation in energy, power and industrial projects, the forum’s expanded scope positions it at the center of investment conversations shaping the future energy economy.

 

Scheduled for July 21–22, 2026, in Houston, Texas, USAEMF comes at a time of surging global demand for copper, cobalt, lithium, manganese and rare earth elements, driven by electrification, battery storage, AI infrastructure and advanced manufacturing. Africa is increasingly critical to securing these materials, highlighting how energy and minerals are now interconnected pillars of industrial growth, geopolitical stability and decarbonization.

The forum’s minerals mandate deepens engagement with African producers – particularly the Democratic Republic of Congo (DRC), home to some of the world’s largest copper and cobalt reserves. Momentum is building through the U.S.–DRC strategic minerals framework and the U.S.-backed Orion Critical Mineral Consortium, a major investment platform supported by the DFC and private partners. The consortium is pursuing a 40% stake in the Mutanda and Kamoto copper-cobalt operations in a $9 billion transaction, securing long-term supply for allied markets while reinforcing cooperation on infrastructure, security and supply-chain governance.

Placing critical minerals at the center while maintaining strong hydrocarbons engagement strengthens U.S.-Africa commercial ties

U.S. financing is also expanding across the region, with the DFC managing a continental portfolio exceeding $13 billion to support mining, processing and transport infrastructure for critical mineral supply chains. Recent commitments include rare earth, graphite and potash projects in Malawi, Mozambique and Gabon; broader investments in Uganda, Tanzania, Zambia and South Africa; and $553 million linked to the development of the Lobito Corridor. The DFC is also a major backer of TechMet, a U.S.-supported investment firm valued at over $1 billion, which is raising up to $200 million to expand copper, cobalt, lithium and rare earth assets and pursue new opportunities across the DRC and Zambia. Together, these initiatives underscore Washington’s push to diversify battery-mineral supply while positioning Africa as a long-term partner in clean energy and industrial value chains.

Houston’s role as host city reflects the alignment between American industrial capacity and African resource development. Long established as a global energy hub, the city is expanding into energy transition technologies, advanced materials, carbon management and industrial innovation. By convening African governments with U.S. private equity, development finance institutions, exporters, insurers and technical service providers, the forum creates a commercial platform capable of converting mineral potential into bankable projects.

“The evolution from USAEF to USAEMF reflects a broader shift toward integrated energy and mineral development,” states Nadine Levin, Portfolio Director at Energy Capital & Power, forum organizers. “Placing critical minerals at the center while maintaining strong hydrocarbons engagement strengthens U.S.-Africa commercial ties and advances projects that deliver long-term shared value.”

While critical minerals define the forum’s strategic expansion, the U.S.’ longstanding role in Africa’s energy sector remains central to the platform’s value proposition. American energy companies continue to advance exploration and development across key upstream markets, support gas monetization in the Gulf of Guinea and revitalize mature production in North Africa. U.S. export credit and development finance are also helping unlock large-scale LNG capacity in Mozambique while supporting optimization and expansion across existing gas infrastructure in West Africa – demonstrating how American capital, engineering expertise and risk-mitigation tools convert resource potential into delivered energy systems.

USAEMF is the leading platform connecting U.S. capital and technical expertise with Africa’s energy and minerals sectors. For more information or to participate at the upcoming forum, please contact sales@energycapitalpower.com

Distributed by APO Group on behalf of Energy Capital & Power.

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Pesalink and Pan-African Payment and Settlement System (PAPSS) Unlock Cross-Border Payments in Local Currencies in Kenya

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February 27, 2026

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Pesalink

The Pesalink–PAPSS partnership will reduce costs, speed up settlements, and help individuals, SMEs and businesses send money more efficiently across borders

NAIROBI, Kenya, February 26, 2026/APO Group/ —

  • Instant 24/7 bank-to-bank transfers across African borders in local currencies.
  • Simpler cross-border payments for individuals, businesses, and SMEs.
  • 80 plus Pesalink network participants now linked to 160 plus PAPSS participating banks.

 

Pesalink, Kenya’s de facto instant payment network, has partnered with the Pan-African Payment and Settlement System (PAPSS) to ease cross-border payment and speed up regional financial integration.

 

The partnership enables instant 24/7 cross-border payments from PAPSS participants into banks and mobile money operators within the Pesalink network in Kenya, all settled in local currencies. This reduces complex correspondent banking requirements and reliance on foreign reserve currencies.

 

Kenyan banks will now be able to offer faster, cheaper cross-border payments

PAPSS, an initiative of the African Export-Import Bank (Afreximbank) in collaboration with the African Union and the AfCFTA Secretariat, enables cross-border payments between African countries. Pesalink is now a Technical Connectivity Provider. It means that 80 plus Kenyan bank, fintech, SACCO and telco participants on the Pesalink network will be connected to 160 plus commercial banks and fintechs on the PAPSS platform.

 

Cross-border payments remain expensive and slow for many African businesses. The 2023 (http://apo-opa.co/4baDSh7) World Bank Remittance Prices report indicates that sending money across African borders incurs on average 7-8% of the total value sent (above the global average of 6–7%). Settlement can also take three to seven business days.

 

The Pesalink–PAPSS partnership will reduce costs, speed up settlements, and help individuals, SMEs and businesses send money more efficiently across borders.

 

Speaking during the partnership signing held at Pesalink offices in Nairobi, PAPSS CEO Mike Ogbalu III said, “For PAPSS to deliver true impact, collaboration with national and private switches like Pesalink is essential. Pesalink is the first switch we’ve piloted for transaction termination in Kenya, and we are already seeing greater adoption by opening more channels for seamless, local-currency cross-border payments across Africa.”

 

Pesalink CEO, Gituku Kirika, said “Kenyan banks will now be able to offer faster, cheaper cross-border payments. They will be helping their customers grow more regional trading relationships and thrive in a more integrated digital economy.”

Distributed by APO Group on behalf of Afreximbank.

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Africa Trade Conference Returns to Cape Town with Esteemed Speakers Driving Africa’s Trade Agenda

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February 27, 2026

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Africa

Second edition convenes global policymakers, business leaders, and innovators to accelerate Africa’s integration into global trade

CAPE TOWN, South Africa, February 26, 2026/APO Group/ –Access Bank Plc (www.AccessBankPLC.com) is proud to announce the distinguished line-up of speakers for the second edition of the Africa Trade Conference (ATC 2026), scheduled to take place on March 11, 2026, at the Cape Town International Convention Centre, Cape Town, South Africa. Building on the strong foundation of its inaugural edition, ATC 2026 will convene an exceptional assembly of global and African leaders, policymakers, investors, and business executives committed to shaping the future of trade on the continent.

The Africa Trade Conference has rapidly emerged as a premier platform for advancing dialogue and action around Africa’s evolving role in global commerce. The 2026 edition will feature influential voices from across finance, government, development institutions, and the private sector, who will share insights on unlocking trade opportunities, strengthening intra-African commerce, enabling business expansion, and positioning African enterprises for global competitiveness.

The confirmed speakers represent a powerful cross-section of leaders driving Africa’s economic transformation.

Building on the momentum of its maiden edition, which convened senior decision-makers from 28 countries, the 2026 conference with the theme “Turning Vision into Velocity: Building Africa’s Trade Ecosystem for Real-World Impact”, will have the keynote address delivered by Kennedy Mbekeani, Director General, Southern Africa Region, African Development Bank (AfDB), alongside Kwabena Ayirebi, Managing Director, Banking Operations at the African Export-Import Bank. Their joint keynote will address the evolving financing landscape for African trade and the strategic pathways for unlocking continental prosperity.

The welcome address will be delivered by Roosevelt Ogbonna, CEO/GMD, Access Bank Plc, who will set the tone for discussions centered on trade transformation, financial inclusion, and regional competitiveness, while Tolu Oyekan, Managing Director & Partner at Boston Consulting Group, will deliver insights on “Africa Trade Outlook 2026”, examining emerging macroeconomic trends, supply chain shifts, and growth opportunities across key sectors.  The CEO of Pan-African Payment and Settlement System, Mike Ogbalu, will be engaging the conference participants on the topic, “Building a Connected Africa Through Trade, Payments & Technology”, focusing on how payment interoperability and digital infrastructure can accelerate the African Continental Free Trade Area (AfCFTA) agenda.

The calibre of speakers confirmed for this year’s conference underscores the urgency and opportunity before us

The conference will also host a High-Level Ministerial Panel that features Elizabeth Ofosu-Adjare, the Minister for Trade, Agribusiness & Industry, Ghana; Tiroeaone Ntsima, Minister of Trade and Entrepreneurship, Botswana; Mr. Florian Witt, Divisional Head, International & Corporate Banking Oddo-BHF, Ms. Nathalie Louat – Global Director, International Finance Corporation (IFC), Dr Isaiah Rathumba – Head of Department, Limpopo Economic Development, Environment and Tourism and Mr. Alfred Idialu – Chief Rep Officer, Deutsche Bank among other policymakers shaping trade policy across the continent.

Commenting on the announcement, Roosevelt Ogbonna, Managing Director/Chief Executive Officer of Access Bank Plc, said:
“The Africa Trade Conference reflects our unwavering commitment to advancing Africa’s economic transformation by creating a platform that brings together the leaders, institutions, and ideas shaping the future of trade. The calibre of speakers confirmed for this year’s conference underscores the urgency and opportunity before us. Africa is not only participating in global trade, it is helping to redefine it. Through this convening, we aim to catalyse partnerships, unlock new opportunities for businesses, and accelerate Africa’s integration into global value chains.”

“At Access Bank, we see ourselves not just as financiers, but as connectors of markets, ideas, and opportunities. Our role is to help African businesses move from ambition to impact, from local relevance to global competitiveness.”

With operations in 24 countries globally, including 16 across Africa, Access Bank’s expansive footprint places it in a unique position to facilitate cross-border trade, unlock regional value chains, and simplify the complexities of doing business across markets.

“Our presence across Africa and key global corridors gives us a front-row seat to the realities of trade. It also gives us the responsibility to design solutions that are inclusive, scalable, and future facing. ATC 2026 is part of that commitment, Ogbonna added.

ATC 2026 is expected to catalyze partnerships, enable policy dialogue, and provide actionable strategies for businesses operating within and beyond the continent.

The Access Bank Chief puts it thus, “Africa will not be a spectator in the remaking of global trade. We will be one of its architects. ATC 2026 is where those blueprints will be drawn.”

For more information and registration, please visit https://apo-opa.co/4sdXWF7

Distributed by APO Group on behalf of Access Bank PLC.

 

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