Africa’s energy appetite is growing, with new upstream rounds opening, major grid programs moving forward and renewable energy pipelines expanding across western, eastern and southern Africa. The question is no longer whether capital will enter African markets, but how to structure African markets to ensure predictable returns and bankable offerings. Through 2026, three financial structures will emerge that are powerful enablers for the implementation of real projects, from large-scale power generation and transmission to decentralized energy, clean cooking and local industrialization.
The Africa Investments in Energy (IAE) Forum in Paris will connect these organizations with the developers, financiers and policy makers who will shape the next phase of energy development in Africa. The forum will bring together dealmakers from Africa, Europe and around the world, allowing blended finance managers, guarantee providers, off-takers and insurers to engage directly with the continent’s most active project sponsors. By centering discussions around real opportunities, IAE 2026 transforms financial mechanisms into practical, deal-ready channels.
mixed financial instruments
Blended finance continues to play an important role in mitigating risk and attracting large-scale investment in Africa’s infrastructure. A recent example is Scatec’s 1.1GW solar and 200MWh energy storage project in Egypt, which was completed in June with approximately $480 million in support from UK International Investment, the African Development Bank and the European Bank for Reconstruction and Development. The deal demonstrated how concessional financing can bring commercial financiers into utility-scale projects that might otherwise stall. At IAE 2026, fund managers will demonstrate how blended structures are contributing to the transition from concept to bankability in early stage projects in Africa, particularly in renewable energy, gas power generation and industrial energy supply, by covering viability gaps, strengthening credit profiles and reducing cost of capital.
Purchase structure and exchange rate risk reduction
Reliable off-take and stable payment arrangements remain critical to profitable energy investments in Africa. Investors prioritize predictable revenue streams through power purchase agreements (PPAs) and fuel supply agreements. Platforms like African GreenCo, currently operating in Zambia, Namibia and South Africa, are setting a strong precedent by standardizing PPAs, improving payment reliability and aggregating IPPs under a single trusted intermediary. The platform, backed by CDC Group and African Infrastructure Investment Managers, provides additional security for producers and reduces risk for trading partners.
Currency fluctuations also pose a significant risk to investors. Nigeria’s 650,000 barrels per day Dangote refinery highlights the challenges of making payments and contracts in local currency. Although regulations allow the purchase of crude oil in naira, suppliers often prefer to pay in dollars, creating cash flow uncertainty and supply risk. This example shows why a clear monetary framework, through local currency financing or exchange adjustment agreements, is essential to ensure predictable project returns and attract private investment.
Guarantee structure
Guarantees are one of the most effective tools to reduce risk and accelerate energy investment across Africa. These can help strengthen off-taker confidence, improve bankability and enable private participation in hard-to-finance projects. South Africa is currently implementing one of the continent’s most ambitious reforms, a $500 million credit guarantee scheme designed to support private sector transmission investment. This will be complemented by the National Independent Transmission Projects Program supported by the National Support Facility, which is expected to mobilize R390 billion. Guarantees under the program are expected to begin by March 2026, paving the way for private participation in grid expansion. At IAE 2026, investors will assess how similar guarantee structures can stabilize financing, reduce project risk and free up private capital for broader energy infrastructure, not just transmission.
Looking ahead to 2026, these financial structures provide a practical blueprint to reduce risk, lower costs of capital, and support faster project execution across the continent. But they rely on real projects, reliable sponsors, and active financing partners. The IAE Forum will create this intersection and will include African governments, developers, DFIs, commercial banks, and insurance companies, providing a venue for risk mitigation tools to connect directly to pipeline advances and transactions.
IAE 2026 is a special forum aimed at connecting African energy markets with global investors and will serve as a key platform for deal-making in the lead-up to Africa Energy Week. Scheduled for April 22-23, 2026 in Paris, the event will offer participants two days of in-depth interaction with industry experts, project developers, investors and policy makers. For more information, please visit www.invest-africa-energy.com. To become a sponsor or register as a representative, please contact sales@energycapitalpower.com.
