As Africa accelerates its energy transition in the face of climate change, economic growth, and population expansion, nuclear energy is emerging as a strategic option for many countries seeking reliable, low-carbon electricity.
- •The International Atomic Energy Agency (IAEA), in its latest Outlook for Nuclear Energy in Africa, estimates that around 500 million people in the continent lack electricity, with its nations heavily relying on fossil fuels.
- •To improve energy security and reduce emissions, many African countries are considering nuclear power.
- •Estimates suggest that reaching even the high-case scenario for nuclear deployment in Africa by 2050 could require investments exceeding US $100 billion.
“The global energy landscape is changing as countries strive for energy security, economic development, and climate resilience,” said Rafael Mariano Grossi, Director General of the International Atomic Energy Agency (IAEA). “Africa, vast in potential, is at a crucial juncture in its energy transition. Nuclear energy offers a proven, scalable, and low-carbon path.”
Nuclear power currently accounts for just 1.4–3.3% of Africa’s electricity production, far below the global average of 9.2%. Projections indicate a modest increase to 2–4.1% by 2050, despite rapidly growing energy needs across the continent. Doubling the nuclear capacity by 2030 or quintupling it by 2050 compared to 2022 levels will not only require political will but also new financing models that can de-risk projects and attract long-term capital.
The Cost Barrier
Nuclear energy, while cost-competitive over its lifespan, demands significant upfront capital for construction, technology licensing, workforce training, and regulatory infrastructure. This makes it a complex investment, particularly in African countries where fiscal space is often constrained, and where other pressing development needs compete for public funds.
Only South Africa operates a nuclear power plant (Koeberg), while Egypt is constructing a four-unit plant expected to begin operations in 2028. Several other nations — including Ghana, Nigeria, and Kenya — have made formal decisions to include nuclear energy in their energy mix.
In Kenya, for instance, the government has identified Siaya County as the proposed site for its first Nuclear Power Project (NPP), after public opposition in the coastal Kilifi region led to a site change. The project is expected to begin development in 2027, with commissioning planned for 2034. Similarly, Nigeria launched a commercial bidding process in 2022 for a 4,000 MW(e) plant and continues to work on regulatory and infrastructure readiness.
Regional Cooperation
According to the publication, regional cooperation is increasingly seen as a game-changer to overcoming the cost barriers.
Countries could co-develop nuclear power projects, sharing investment costs, expertise, and infrastructure across borders. This approach would maximize efficiencies, minimize duplication, and increase project viability. It would also significantly boost collective bargaining power when negotiating financing terms with global partners — a critical factor for countries with limited credit profiles or high risk premiums.
“Entities like the West African Power Pool (WAPP) and Eastern Africa Power Pool (EAPP) have already shown how regional energy integration can lower electricity costs and enhance reliability.These platforms can be expanded to support nuclear projects through Joint funding and pooled financing models, power take-off agreements between countries, shared regulatory development and safety standards, joint investment in training and nuclear infrastructure, public engagement and awareness campaigns,” the IAEA notes.
“These models can be scaled up and tailored to support nuclear deployment.”
The report further says, to attract international capital and mitigate risk, African nations must consider a diverse blend of financing instruments: Public-private partnerships (PPPs) with technology vendors and utilities, Green bonds or nuclear sustainability bonds linked to climate target, Loan guarantees and risk mitigation tools from multilateral institutions, Vendor-backed financing models, including build-own-operate (BOO) arrangements, Regional investment funds to mobilize domestic and diaspora capital
The World Bank, African Development Bank, and other development finance institutions should be brought in early to support nuclear infrastructure readiness, regulatory strengthening, and concessional finance mobilization.
