Africa's nuclear power projects attract renewed interest from international investors

Business Insider

07-07-2025

Amid rising energy demands and a global push for low-carbon solutions, Africa's long-stalled nuclear power ambitions are gaining fresh momentum.
Africa's nuclear energy ambitions are regaining interest amidst rising energy demands and a global move towards low-carbon solutions.
The IAEA pledged support for African nations to establish safe and sustainable nuclear power programs.
Small Modular Reactors (SMRs) and microreactors are seen as promising technologies for Africa's energy transition.
International investors and development partners are showing renewed interest in funding nuclear power infrastructure across Africa, viewing it as a viable path to energy security, industrial growth, and climate resilience.
As the continent faces rising energy deficits and the urgent need to transition to cleaner, more sustainable sources, nuclear power—particularly Small Modular Reactors (SMRs) and Micro Reactors (MRs)—is emerging as a promising option. However, financing remains a major hurdle to its widespread adoption.
At the Africa Nuclear Energy Innovation Summit, held in Kigali, Rwanda, convened policymakers, investors, and energy experts to discuss nuclear power's role in Africa's energy transition, with a central focus on financing and local capacity building.
The summit also highlighted the need to address the skills gap, with the AFCFTA's protocol on the free movement of people identified as a strategic tool for fostering cross-border education and training in nuclear science.
The Director General of the International Atomic Energy Agency (IAEA), Rafael Grossi, reaffirmed the agency's commitment to supporting African countries in developing peaceful nuclear energy programs.
He stressed that Africa's full integration into the global transition to low-emission energy is crucial, stating, " There is nothing preventing Africa from claiming its place" in the global energy landscape."
Grossi emphasized Africa's potential as a key player in the future of global energy, highlighting that clean and reliable energy is "no longer a luxury but a pressing necessity" for the continent.
While acknowledging that nuclear power may not be suitable for every country, he stressed that a low-carbon global economy would be "impossible without it." He also pointed to growing interest in Small Modular Reactors (SMRs), microreactors, and traditional nuclear technologies.
He added that The IAEA is ready to work 'hand in hand with Africa on its journey toward a safe and sustainable nuclear future.'
Rwanda's Minister of State for Public Investments, Tesi Rusagara, urged African nations to tap into domestic capital markets, citing that the continent's historical reliance on external concessional financing is declining, necessitating a strategic shift towards leveraging domestic and regional financial resources.
Africa's Nuclear Financing Gap Widens
Meanwhile, Africa faces a significant annual infrastructure financing gap of $100 billion, according to the African Development Bank. This challenge is exacerbated by a global climate of development finance pessimism, with projected declines in official development assistance.
However, Stéphane Ouedraogo, Managing Partner at Stallion Capital Africa, noted that institutions like the World Bank are increasingly open to financing nuclear projects, bringing not only capital but also credibility and risk mitigation.
As countries like Kenya and Rwanda explore Small Modular Reactors (SMRs), Africa's nuclear momentum is gaining traction. Realizing this potential will require coordinated financing strategies, policy support, and investment in local expertise, and crucial steps toward achieving sustainable, low-carbon energy on the continent.