$40 Billion Africa Energy Fund to Boost Clean Cooking Access and Energy Transition

The fund focuses not only on expanding electrification but also on addressing the urgent need for clean cooking solutions.

A groundbreaking $40 billion Africa Energy Fund was launched at the Mission 300 Africa Energy Summit in Dar es Salaam, marking a significant milestone in Africa’s pursuit of a sustainable energy future. The initiative, aimed at providing cleaner and more reliable energy to 300 million people by 2030, is part of Africa’s broader ambition to transition to sustainable energy solutions and address some of the continent’s most pressing energy challenges.

The fund focuses not only on expanding electrification but also on addressing the urgent need for clean cooking solutions. As part of this transition, clean cooking remains a critical yet underfunded area. More than 900 million people in Africa still rely on traditional biomass, such as wood and charcoal, to cook their food. The health, environmental, and economic consequences are staggering. Household air pollution caused by these fuels contributes to over 600,000 premature deaths annually. Meanwhile, deforestation and increasing carbon emissions continue to threaten the environment, making it clear that clean cooking is a crucial sector that demands immediate attention and investment.

The Africa Energy Fund represents a strategic and forward-thinking solution to these challenges, receiving strong financial backing from global institutions. The World Bank has committed $22 billion to support the initiative, while the African Development Bank has pledged $18.2 billion. The Islamic Development Bank is contributing $2.65 billion, and the OPEC Fund has committed an additional $1 billion. These significant investments provide a robust foundation for accelerating energy access and supporting Africa’s transition to cleaner, more sustainable energy solutions.

In tandem with these financial commitments, several African countries are already showing strong leadership in expanding clean cooking access. These efforts are critical as nations work to meet their energy access goals, which often include boosting clean cooking alternatives to reduce reliance on biomass. Kenya, for example, aims for universal access to clean cooking by 2028 and is making strides by promoting liquefied petroleum gas (LPG), electric cooking, and bioethanol alternatives. With targeted support from private sector investors and international partnerships, Kenya is successfully increasing adoption rates through subsidies for LPG and infrastructure investment.

Tanzania, another key player in the African clean cooking landscape, is integrating clean cooking solutions into its national electrification plans. The country’s National Clean Cooking Strategy outlines clear goals for increasing the adoption of cleaner cooking technologies as part of the broader energy transition framework. Additionally, Ghana is adopting a comprehensive approach to clean cooking, focusing on enhancing the affordability of LPG, promoting efficient biomass stoves, and raising public awareness about the health benefits of clean cooking. Ghana’s strategy includes encouraging local manufacturing of clean cooking stoves and fuel alternatives, which not only supports sustainable energy but also fosters local economic development.

The $40 billion Africa Energy Fund is not just about expanding electricity access; it also aims to generate substantial economic opportunities by powering industries, businesses, and households. Reliable energy is a crucial enabler of economic growth. Investments in clean cooking technologies are expected to reduce healthcare costs, increase productivity, and contribute to improved gender equality by reducing the burden of traditional cooking methods, which disproportionately affects women and children.

As the African Energy Week (AEW): Invest in African Energies 2025 approaches, the conversations around clean cooking solutions will take center stage. AEW 2025 is the premier event for stakeholders to discuss and secure investment in energy access and transition solutions. Key topics will include strategies for financing clean cooking projects, leveraging carbon credit mechanisms, and integrating clean cooking solutions into national electrification plans. Best practices from leading African countries, such as Kenya, Tanzania, and Ghana, will be showcased as examples of successful policies and initiatives that can be replicated across the continent.

A key focus will also be on scaling investments in clean energy infrastructure, especially off-grid electrification, which plays an essential role in providing energy access in remote and underserved areas. Innovative financing mechanisms will be discussed to attract more capital into clean cooking technologies and off-grid solutions. The goal is to create a sustainable energy ecosystem that offers a diverse range of energy access options tailored to the unique needs of different regions and communities across Africa.

With the launch of the Africa Energy Fund, the momentum for clean cooking investments is growing, but there is still much work to be done. Achieving universal energy access by 2030 requires a multi-faceted approach, which includes large-scale electrification projects, off-grid energy solutions, and urgent interventions in clean cooking. AEW 2025 will provide an opportunity for governments, businesses, and investors to align their efforts and secure the necessary funding to drive impactful change.

The $40 billion Africa Energy Fund is a bold and ambitious initiative, but with the right policies, partnerships, and investments, Africa’s energy transition is within reach. The focus on clean cooking solutions is essential to ensuring a healthy, sustainable, and inclusive future for the continent. As global and regional stakeholders come together, there is a real opportunity to create lasting change and ensure that millions of Africans benefit from cleaner, safer, and more affordable energy sources in the years to come.