MIAMI-BASED ORGANIZATION REVOLUTIONIZING THE ENERGY SECTOR IN AFRICA

BY KEMI AROSANYIN

 

Sun Africa, a Miami-based U.S. company, is transforming the energy landscape in Africa. Over the past few decades, the global demand for renewable energy has surged, driven by its environmental benefits and cost-effectiveness. Africa is naturally endowed with sources of renewable energy such as abundant sunlight, hydro, geothermal, and bioenergy. As a result, investment in renewable energy across the continent has seen significant growth in recent years.

In 2022, the African energy sector received $118 billion in foreign direct investment (FDI), accounting for approximately 60% of the total FDI inflows to the continent, according to the Boston Consulting Group. However, this level of investment remains relatively low when benchmarked against other regions of the world.

For decades to come, the renewable energy industry in Africa will continue to offer tremendous investment opportunities and U.S. companies are taking note. Africa is home to more than 1.4 billion people, but the continent still has the lowest rate of electricity access in the world with more than 640 million Africans living without reliable energy sources. Even though capacity has increased for renewable energy due to completed and on-going projects across the continent, it accounts for only about 18 percent of the total electricity output.

Africa is estimated to require $2.9 trillion in capital investment to achieve sufficient electrification by 2050. A significant portion of this funding is expected to be directed toward the development of renewable energy infrastructure, which presents a major opportunity for U.S. developers. While Southern and Eastern Africa have the highest renewable energy capacity on the continent, the biggest opportunities exist in North Africa (Egypt, Morocco), and West Africa (Nigeria and Senegal). According to a report, these regions will need approximately $400 billion by 2050 to develop midstream infrastructure in the energy sector.

A growing number of stakeholders in the sector are providing mini-grids, power plants, and other integrated solutions. However, Sun Africa is one key U.S. player revolutionizing the energy sector in the region.

ABOUT SUN AFRICA

Headquartered in Miami, Sun Africa is an international energy and infrastructure developer delivering sustainable and economically viable energy solutions across Africa.

Founded in 2020, Sun Africa has emerged as a leader in the energy space, reshaping and redefining the industry landscape. Inspired by Africa’s abundant sunlight, from which Sun Africa likely derived its name, the company is at the forefront of clean energy solutions and playing a crucial role in closing the energy infrastructure gap in the continent.

Equipped with the capacity to develop, install, finance, operate, and maintain large-scale solar projects and off-grid solutions, Sun Africa’s mission is to provide sustainable yet competitive clean energy to African nations, while facilitating billions of dollars in exports for U.S. manufacturers.

PROJECTS & IMPACT

With multiple projects valued at tens of billions of dollars at various stages of development, Sun Africa is driving the deployment of clean energy solutions throughout Sub-Saharan Africa. By harnessing the power of the sun, the company is helping to uplift local communities and enabling countries to achieve their energy generation targets.

The following projects summarize the impact of Sun Africa’s work in the continent:

In Angola, Sun Africa built the largest solar energy project in Sub-Saharan Africa. Part of a broader development effort totaling 370MW across five sites, the 188-megawatt Biopio photovoltaic solar power plant in Benguela Province, commissioned in 2022, has significantly strengthened Angola’s electricity grid and diversified its energy mix. As a result, over 1 million Angolans now have access to clean energy, preventing more than 935,000 tons of carbon emissions annually and improving environmental conditions.

Sun Africa is currently building its second project in Angola, which includes 500 megawatts of utility-scale solar PV, over 200 solar cabin systems, more than 60,000 solar home systems, 278 megawatts of solar energy from mini-grids, water purification systems, and 287 megawatt-hours of battery storage across 64 communities in four Southern Provinces. Upon completion, the $2 billion project will electrify 350,000 households, provide clean water to 1.1 million Angolans, and improve the lives of over 2.1 million people. “Transformative for Angola for sure, but it also benefits US manufacturers as the project includes approximately $1 billion in U.S. goods and services, a true win-win scenario that has been a catalyst for increased economic ties between the U.S. and Angola,” says Adam Cortese, Chief Executive Officer of Sun Africa.

In Nigeria, Sun Africa is collaborating with the Niger Delta Power Holding Company (NDPHC) to develop one gigawatt of utility-scale solar power generation across multiple locations. The project will include battery storage, interconnection, and distribution infrastructure. Once completed, it will transform electrification in Nigeria, enhance the quality of life for millions, and strengthen the country’s power sector.

The company also plans to install over 200 mini-grids and solar cabins in rural communities across 18 states in Nigeria. These systems will power homes, clinics, schools, irrigation systems, water purifiers, and small businesses. The project will boost productivity, social mobility, and economic growth, while strengthening the bottom line of U.S. manufacturers.

FINANCING & PARTNERSHIPS

Due to a massive infrastructure deficit, Sub-Saharan Africa needs hundreds of billions of dollars annually to close its infrastructure funding gap. Clearly, the continent’s domestic revenue base is inadequate to meet this requirement. Hence, the continent must tap into foreign wallets to finance national and regional infrastructure projects in key sectors such as energy, transport services, ICT, and clean water.

When it comes to developing renewable energy infrastructure and aiding the transition to a low-carbon economy across Africa, high costs and limited access to financing remain one of the biggest challenges. While the post-construction maintenance of renewable energy systems is relatively affordable, the initial installation costs are steep and must be covered upfront. To overcome this barrier, a comprehensive and innovative approach to mobilizing public, private, bilateral, and multilateral financing is essential to secure the funds needed for energy projects across the continent.

Fortunately, Sun Africa has established partnerships with top financial institutions, leading suppliers, and some of the largest energy engineering, procurement, and construction companies in the world. Successfully implementing the large-scale projects undertaken by Sun Africa would be impossible without this strong network of partners and robust financial backing. The company’s unmatched supply chain capabilities and reliable access to capital allow it to optimize equipment purchases, negotiate favorable local contracts, and maximize economic value for clients.

One of those strategic partners is the Export-Import Bank of the United States (US EXIM). For decades, US EXIM has supported U.S. companies doing business in Africa by providing trade finance tools to help them export their goods and services to Africa. Sun Africa is now leveraging this partnership on an unprecedented scale, driving significant U.S. exports to Africa while contributing to the continent’s economic development. This mutually beneficial scenario is fostering increased commercial cooperation between the U.S. and Africa’s rapidly growing markets, creating economic opportunities for both parties.

NAVIGATING THE COMPLEXITIES OF DOING BUSINESS IN AFRICA

Doing business across national boundaries presents challenges everywhere, but the specific dynamics of each market vary. Sub-Saharan Africa stands out as one of the most exciting emerging markets, rich in natural resources and offering significant investment potential. Africa’s position as the second-fastest-growing region in the world, with eleven of its countries ranked among the world’s 20 fastest-growing economies in 2024, underscores the continent’s resilience and raises optimism for continued growth.

However, the region also presents major challenges for doing business. Many African countries rank poorly on the World Bank’s Business Ready report (formerly Doing Business), which evaluates the business environment based on key parameters such as regulatory frameworks, public services, and operational efficiency. The report also assesses progress in areas like digital adoption, environmental sustainability, and gender.

While the utilization of renewable energy across Africa is on the rise, driven by favorable market conditions and availability of natural resources, numerous obstacles remain. Despite the challenges, Sun Africa is effectively navigating the landscape in the countries where it operates. The company achieves this by collaborating with government agencies and forming strategic partnerships with local companies, including service providers and suppliers. This approach helps create a sustainable and supportive ecosystem. The company has demonstrated understanding of the African business environment, with its cultural nuances, while also facilitating U.S. participation in these fast-growing markets.

As a socially responsible corporation, Sun Africa contributes positively to the host country’s economy through a variety of initiatives. For example, the company is donating a solar cabin system to the off-grid rural community of Kaida, located outside Abuja, Nigeria’s capital. This system, which will provide 30 KWp of solar power and 81 kWh of energy storage, will enable around 700 people in the community to access electricity. The project will not only transform local business activities and improve the quality of life but also help build long-term, mutually beneficial relationships with the community.

In Angola, Sun Africa and its partners have donated nearly three (3) kilometers of solar-powered lighting along the road to Biopio Hospital, an initiative that has enhanced public safety, reduced crime, and ensured residents can access healthcare services around the clock. As in Biopio, Sun Africa donated solar lighting along the road to Baía Farta Hospital and also provided the community with solar-powered market infrastructure to revitalize the local fish trade.

Clearly, engaging as a stakeholder in the local economy is a strategy that will endure, and this approach will continue to support Sun Africa’s successful business ventures in the region – a proof that the challenges associated with doing business in Africa, while significant, are not insurmountable.

Africa has emerged as a beacon of opportunity in renewable energy. Many stakeholders are optimistic that the continent’s vast potential in the sector could be a game changer, helping to reduce poverty and meet its electrification targets, hopefully with the help of Sun Africa.