Rethinking Economic Development: Africa’s Renewable Energy Opportunity Amid Aid Cuts

As world leaders convened at the 2025 World Economic Forum (WEF) in Davos, discussions underscored the urgency of addressing global challenges amidst a shifting world order. U.S. President Donald Trump’s address set a tone of economic nationalism, a controversial shift back to fossil fuels, and rapid policy reforms aimed at reshoring American manufacturing and energy independence. While these policies are U.S.-centric, they illuminate critical opportunities for African economies to reimagine their development strategies. President Trump’s reshoring mantra reveals a truth: local production = resilience. Africa exports to the world are over 90% in raw form vs over 90% of finished products. This needs to change.

The reduction of aid and the U.S. exit from WHO highlights the fragility of aid-dependent systems and the importance of resilience-building. For Zimbabwe, this is a wake-up call to strengthen domestic systems, diversify partnerships, and embrace innovation to secure its future. While challenging, these shifts can lead to a more self-reliant and sustainable trajectory for development.

As the global landscape changes, Zimbabwe must prioritize investments in health, energy, and economic resilience to adapt and thrive. In doing so, it can turn a challenge into an opportunity for transformative growth.

Advancing Energy Sovereignty in Africa

President Trump’s declaration of a U.S. national energy emergency has renewed global debates on energy independence and its implications. Southern Africa, endowed with vast but untapped fossil fuel reserves, remains at a crossroads. However, the region also enjoys unparalleled solar potential, receiving over 8 hours of sunshine daily, equating to nearly 10,000 terawatt-hours of solar energy annually—enough to meet global energy demand multiple times over.

This abundant resource positions Africa to champion energy sovereignty by adopting affordable, decentralized solar solutions such as:

• Rooftop Solar Systems: Reducing reliance on grid energy and promoting energy independence for households and businesses.
• Solar Farms: Large-scale generation to power industrial hubs and export excess energy to neighboring regions.
• Microgrids: Providing clean, reliable energy access to off-grid communities, reducing inequalities in energy access.

Governments must incorporate solar into national energy strategies, backed by robust incentives for private sector participation. For example, South Africa’s Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) has already attracted over ZAR 210 billion (USD 12 billion) in private investment. Similar models could unlock Africa’s renewable potential, enabling self-reliance and resilience against volatile fossil fuel markets.

Positioning as a Leader in AI-Powered Renewable Solutions

The Davos agenda emphasized artificial intelligence (AI) as a cornerstone of future economic growth, but powering AI systems demands enormous energy resources. Data centers alone consume over 200 terawatt-hours (TWh) annually, with this figure projected to triple by 2030. Solar energy, as the cheapest source of electricity in Africa, presents an opportunity to position the continent as a hub for sustainable AI-powered solutions.

Zimbabwe, home to Africa’s largest lithium deposits, plays a pivotal role in this transition. By investing in value addition for lithium, such as producing world-class batteries, Zimbabwe can fuel energy storage solutions for AI data centers, electric vehicles, and smart grids. This aligns with global trends; the battery market is expected to grow to USD 168 billion by 2030, driven by clean energy and storage demands.

Furthermore, leveraging solar power to establish energy-efficient data centers in Africa could attract global tech companies, creating jobs and positioning the continent as a player in the AI race. Kenya’s Konza Technopolis is an example of how strategic planning can integrate technology and renewable energy to drive sustainable development.

Leveraging Climate Resilience Initiatives

While the U.S. pivoted away from global climate agreements, Africa remains uniquely positioned to lead on climate resilience. By prioritizing renewable energy, Sub-Saharan Africa could become a global hub for clean energy solutions that address both local energy needs and international sustainability goals.

For instance, decentralized renewable energy systems and rent to buy solar solutions, like those promoted by Solarpro, can reduce reliance on costly fossil fuel imports and enhance energy access. A number of African Countries like Egypt, Algeria, Tunisia have demonstrated the power of regional manufacturing; local solar assembly plants in these countries have reduced costs shipping costs, making solar systems more accessible to rural households.

Additionally, Africa could capitalize on global green financing trends. In 2024, global investment in clean energy surpassed USD 1.7 trillion, with emerging markets capturing only a fraction. By aligning with trade incentives such as the African Continental Free Trade Area (AfCFTA), Solarpro and similar companies can promote regional manufacturing, reducing costs and qualifying for export incentives.

Capitalizing on Tech and Crypto Investments

The intersection of renewable energy and emerging technologies like blockchain and cryptocurrency offers untapped potential. Crypto mining consumes vast amounts of energy—Bitcoin mining alone used over 121 TWh in 2021, exceeding the energy consumption of countries like Argentina. Africa can position itself as a hub for sustainable crypto mining operations, powered by abundant and affordable solar energy.

Furthermore, African nations should explore creating indigenous cryptocurrencies tied to renewable energy projects, promoting transparency and limiting external dominance. Blockchain could also enhance solar financing by tracking investments and ensuring accountability, attracting global partners keen on green finance initiatives.

Conclusion

The 2025 Davos speech signals a shifting global landscape where energy, innovation, and economic nationalism will dominate. For Africa, these trends present a wealth of opportunities to lead in renewable energy innovation, attract global investment, and champion sustainable development.

By leveraging its solar potential, advancing lithium value chains, and aligning with emerging technologies, Africa can transform challenges into opportunities. Solarpro is uniquely positioned to drive this transition, showcasing how decentralized energy solutions can fuel inclusive growth, climate resilience, and technological advancement.

In a world increasingly shaped by energy and sustainability, Africa’s vision and execution can solidify its role as a transformative force for global good.