Growth Gateway: Investing in green sectors in Africa, commercial and industrial solar investment case (summary)
Published 17 September 2025
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Commercial & industrial (C&I) solar systems provide on-site power generation for individual businesses (such as factories and shopping malls) with reliable, low cost, clean power at a stable tariff with zero capex.
The C&I solar sector in Africa is gaining momentum as businesses seek alternatives to unreliable and expensive grid electricity. Solar systems offer a cleaner, more cost-effective, and stable power source, with applications across industrial facilities, retail, social infrastructure, and government buildings.
The market, currently valued at around £304 million, is projected to grow at a 39% compound annual growth rate (CAGR), reaching £1.6 billion by 2027 and potentially £8.8 billion at full maturity, driven by industrialisation, falling solar costs, and supportive policy developments like net metering.
Key success factors for developers include deep local knowledge, flexible contracting, strong supplier networks, and efficient operations. Countries such as Nigeria, South Africa, and Kenya are identified as high-potential markets due to their industrial scale, solar irradiation, and energy challenges.
However, challenges such as credit risk, regulatory inconsistency, talent shortages, and intense competition persist. Mitigation strategies include rigorous due diligence, cross-sector talent acquisition, and targeting markets with enabling policies.
For UK investors, the report outlines multiple entry points including direct investment in developers, project financing, and energy-as-a-service models. The value chain spans from hardware manufacturing to operations and maintenance, with recent transactions indicating growing investor interest and market consolidation. Notable deals include Shell’s acquisition of Daystar Power and major equity rounds by CrossBoundary Energy and Solarise Africa, highlighting the sector’s momentum and investment potential.