Can Africa Deliver by 2030? Financing, Energy and Urban Gaps Put SDG Progress Under Pressure

Africa is making progress on the SDGs, but major gaps in water, energy, industrialization, urban services and financing threaten its ability to meet the 2030 targets. The report calls for stronger domestic financing, private investment, regional integration and development partnerships to turn Africa’s economic potential into jobs, resilient infrastructure and better living standards.

Africa is approaching the final years of the 2030 Agenda with an uncomfortable contradiction: its economies are growing, but improvements in basic services, infrastructure and living standards are not keeping pace. The 2026 Africa Sustainable Development Report, jointly prepared by the African Union Commission, African Development Bank, United Nations Development Programme and United Nations Economic Commission for Africa, finds that progress is visible across key Sustainable Development Goals, but remains too slow. With GDP growth estimated at around 4 per cent in both 2025 and 2026, the continent has economic momentum. Yet poverty, inequality, informality, limited industrialization and inadequate job creation continue to weaken the development impact of that growth.

Water and Energy Gaps Remain a Major Development Challenge

Africa has expanded access to basic drinking water, reaching about 81 per cent of the population in 2023. But access to safely managed drinking water improved only from roughly 33 per cent in 2015 to 36 per cent by 2024. Sanitation presents an even greater challenge. Safely managed sanitation coverage increased from 24.1 per cent to just 30 per cent between 2015 and 2024, leaving an estimated 650 million Africans without basic sanitation.

Wastewater treatment is also struggling. The share of domestic wastewater safely treated declined from 34.2 per cent in 2022 to 33.01 per cent in 2024. For governments, this means that building new infrastructure alone will not be enough. Greater attention must go to maintaining water systems, treating wastewater, improving irrigation efficiency and protecting water resources from growing climate pressures.

Energy access tells a similar story. Electricity coverage increased from 46 per cent in 2015 to 53 per cent in 2023, but major inequalities remain. Only 40.1 per cent of rural populations had electricity access, compared with 85.6 per cent in urban areas.

Clean cooking is an even larger concern. Only 33.9 per cent of Africans had access to clean cooking fuels and technologies in 2023, leaving more than 970 million people dependent on polluting alternatives. Household air pollution is associated with more than 400,000 premature deaths annually.

These deficits also represent major investment opportunities. Renewable power, mini-grids, solar home systems, energy storage, clean cooking, desalination, wastewater treatment and smart water technologies could attract private capital if governments provide predictable regulation and development institutions help reduce financing risks.

Africa Needs to Turn Digital Progress into Industrial Growth

Africa's digital connectivity has expanded much faster than its industrial base. Around 92.8 per cent of the population was covered by at least a 2G mobile network in 2023, yet manufacturing value added accounted for only about 10.6 per cent of GDP in 2024.

Regional differences are considerable. Manufacturing represented 13.1 per cent of GDP in Central Africa and 12.4 per cent in North Africa, compared with 10 per cent in Southern Africa, 9.5 per cent in West Africa and 8.8 per cent in East Africa. Manufacturing value added per person averaged only about US$212 across the continent.

Small and medium-sized enterprises are particularly important because they contribute more than 30 per cent of African GDP. Yet access to finance remains limited, with only around 18 per cent of small-scale industries having access to a loan or line of credit in 2025.

The opportunity for governments is to connect digital expansion with industrial policy. Investment in broadband, data centres, artificial intelligence, research, technical skills and digital public infrastructure can help businesses become more productive. At the same time, faster implementation of the African Continental Free Trade Area could allow firms to reach larger markets and build regional value chains.

For private investors, opportunities are emerging in logistics, manufacturing, fintech, industrial parks, data centres and technology services. However, poor transport infrastructure, expensive energy and financing constraints remain serious risks. Africa's annual infrastructure financing gap alone is estimated at US$68–108 billion.

Rapid Urban Growth Is Increasing Pressure on African Cities

Africa's fast-growing cities are becoming another test of development policy. The proportion of the urban population living in slums, informal settlements or inadequate housing declined only marginally, from 50.4 per cent in 2014 to 49.1 per cent in 2022.

The regional differences are striking. North Africa recorded a rate of 17.7 per cent in 2022, while East Africa stood at 64.6 per cent. Access to convenient public transport remains below 40 per cent across every African subregion, significantly below the global average of 51.6 per cent.

Governments therefore face growing pressure to expand affordable housing, public transport, water, sanitation, electricity and waste-management services while making cities more resilient to floods, heat and other climate risks.

For development partners and investors, urbanization creates a substantial pipeline of potential projects. But weak municipal finances, limited planning capacity and inadequate city-level data can make projects difficult to finance. Strengthening local governments and preparing bankable urban projects will therefore be critical.

Financing and Implementation Will Decide Africa's SDG Future

The report identifies financing as a fundamental barrier across sectors. African government revenue averaged about 23 per cent of GDP in 2022, compared with roughly 32 per cent globally, while tax revenue stood at around 16 per cent of GDP.

External financing is becoming less reliable. Official development assistance to Africa totalled US$35.9 billion in 2023, an 8.8 per cent real decline from 2021. Remittances, however, have proved remarkably resilient, rising from approximately US$86 billion in 2019 to US$104.5 billion in 2024.

This changing financial landscape requires a different development strategy. Governments need to broaden tax bases, digitalize revenue collection, improve public investment management and create cleaner regulatory environments. Development partners can provide concessional finance, guarantees and climate funding that help countries attract private capital rather than simply finance isolated projects.

For businesses and investors, Africa offers large markets in renewable energy, water, transport, housing, digital infrastructure and manufacturing. The opportunity is significant, but so are the risks from weak institutions, expensive finance and regulatory uncertainty.

The report's central message is ultimately straightforward: Africa does not lack development plans. It needs the financing, institutions and partnerships to implement them. With 2030 approaching, success will increasingly depend on turning existing commitments into practical, investable and measurable projects that create jobs, improve essential services and deliver sustainable growth.