Africa took a huge leap forward in solving its power challenges in 2024, more than doubling its hydropower output compared to the previous three years combined. According to the newly released 2025 World Hydropower Outlook, the continent added over 4.5 gigawatts (GW) of new hydropower capacity last year—up from just 2GW in 2023. That’s a clear sign that the continent is turning the corner on long-term energy security.
Today, hydropower provides about 20% of all electricity generated across Africa. But here’s the exciting part—only about 11% of the continent’s hydropower potential has been tapped. That means Africa is sitting on one of the largest untapped sources of clean energy in the world.
Several big projects came to life in 2024. Tanzania flipped the switch on its massive Julius Nyerere Hydropower Project. Ethiopia added 800MW to its Grand Renaissance Dam. Uganda finally completed the long-delayed Karuma hydropower plant, contributing another 600MW to its grid. And in Cameroon, the Nachtigal plant added 420MW.
These successes are being driven by both government support and a growing wave of private sector investment. Malcolm Turnbull, President of the International Hydropower Association (IHA), put it plainly: “Africa is clearly entering a new era for hydropower.” Still, he cautioned that without serious financing reform, the momentum could be short-lived.
Despite all this progress, a staggering 62.5GW of approved hydropower projects remain stuck in limbo—largely due to financial roadblocks. From unstable foreign exchange rates to unclear energy purchase agreements, investors still see African hydropower as risky business.
Experts warn that unless governments and international partners get creative with financing—through things like blended capital and stronger guarantees—many of these clean energy dreams will remain just that: dreams.
But it’s not just about building new plants. Africa’s older hydropower infrastructure is also getting some much-needed attention. In 2024, the African Development Bank launched a $9.72 million program to modernize 12 privately run hydropower sites across eight countries. The goal? Reduce outages, extend the lifespan of these critical facilities, and improve electricity stability for millions of people.
Turnbull summed it up well: “Hydropower’s role in the energy transition is growing. But this growth must be sustained through strong policy, targeted investment, and smarter operations.”
In a continent where power cuts are still part of daily life for many, this renewed push into hydropower offers a rare mix of optimism and opportunity. The lights are beginning to stay on a little longer—and brighter—across Africa.
