7 July
2025, Africa’s hydropower
sector achieved a significant milestone in 2024, with more than 4.5 GW of new
capacity added a substantial increase compared to the 2 GW commissioned in
2023, according to the International Hydropower Association (IHA). Hydropower
now accounts for 20% of the continent’s total electricity generation,
reflecting a growing emphasis on clean and reliable energy sources.
The
findings, outlined in the IHA’s 2025 World Hydropower Outlook, position Africa
as one of the most promising frontiers for hydropower development globally.
Despite its immense potential, the continent has so far tapped into only 11% of
its technical hydropower capacity.
“Encouragingly,
this year’s World Hydropower Outlook shows that global new capacity is
accelerating after several years of stagnation. Hydropower is playing an
increasingly vital role in the global energy transition,” said Malcolm
Turnbull, President of the IHA.
Africa’s
robust performance in 2024 was driven by both private investment and
government-backed initiatives. Noteworthy project milestones included the
commissioning of Tanzania’s Julius Nyerere Hydropower Project, the addition of
800 MW to Ethiopia’s Grand Ethiopian Renaissance Dam (GERD), full operations at
Uganda’s 600-MW Karuma plant, and the completion of Cameroon’s 420-MW Nachtigal
project.
However,
the Outlook also highlights persistent financing barriers. An estimated 62.5 GW
of approved hydropower projects remain stalled across Africa due to a
combination of factors such as offtake risks, currency volatility, and
bankability issues. These financial hurdles continue to hinder the pace of
implementation.
To
address operational efficiency and sustainability, the African Development Bank
(AfDB) launched the Africa Hydropower Modernisation Programme in 2024. Backed
by nearly $10 million in funding and technical support from the IHA, the
initiative aims to upgrade legacy hydropower infrastructure across eight
African nations.
Several
transformative projects remain under construction. Angola’s 2,172-MW Caluco
Cabaça project is central to its goal of expanding national capacity from 1,200
MW to 9,000 MW. Similarly, Nigeria’s 3,050-MW Mambilla project is among several
efforts to unlock over 10,000 MW of potential capacity from existing and
planned dam sites. Other national priorities include Tanzania’s Stiegler’s
Gorge and Cameroon’s Emergence 2035 strategy, both of which place hydropower at
the core of long-term energy planning.
From a
sustainability standpoint, Zambia’s 180-MW Ngonye Falls project became the
first hydropower facility in Africa to receive gold certification under the
Hydropower Sustainability Standard, signaling progress toward environmentally
and socially responsible project execution.
The
Outlook further emphasizes the growing role of pumped storage hydropower (PSH)
as a key enabler of grid flexibility and resilience. Africa’s PSH capacity
reached 3,726 MW in 2024, with 349 MW added during the year.
“PSH is on the rise
globally, and rightly so,” Turnbull added. “As the most proven and scalable
long-duration storage solution, it is crucial to ensure reliability and balance
in increasingly variable power systems.” As hydropower adoption accelerates,
sustained growth will depend on bold policy reforms, streamlined permitting,
and financing mechanisms that recognize the multi-dimensional value of
hydropower in Africa’s evolving energy landscape.