EU Clean Energy Investment: Powering a New East Africa
The European Union pledges €545 million to accelerate clean energy access across Africa — with East Africa set to benefit from a wave of renewable projects and green jobs.
East Africa’s energy transition just got a major boost. The European Union (EU) has unveiled a new €545 million (approximately US$636 million) funding package aimed at transforming energy access across Africa — and countries in the East African Community (EAC) stand among the biggest beneficiaries.
Announced under the EU’s Global Gateway initiative, the funds will finance a combination of renewable power plants, off-grid mini-grids, and climate-resilient infrastructure. Brussels says the investment aims to help millions of Africans gain reliable electricity while cutting the continent’s carbon footprint.
Lighting Up the Continent
EU Commissioner for International Partnerships, Jutta Urpilainen, described the move as “a long-term commitment to powering Africa’s green industrial revolution.”
“The Global Gateway is Europe’s offer to our African partners: sustainable investment that respects people, planet, and prosperity,” she said at the signing ceremony in Brussels.
Projects expected to benefit include Kenya’s geothermal expansion, Uganda’s solar mini-grids, Tanzania’s rural electrification programs, and Rwanda’s clean cooking and hydropower initiatives. The EU says priority will go to projects that directly link renewable energy to productive use — powering schools, clinics, and small industries.
The East African Edge
East Africa already leads much of the continent in renewables.
Kenya generates more than 80% of its electricity from renewable sources, mainly geothermal and wind.
Uganda has invested heavily in hydropower, though recent droughts have exposed vulnerabilities.
Rwanda and Tanzania are scaling up decentralized solar networks to reach last-mile communities.
The new EU fund will amplify this momentum by attracting co-financing from African Development Bank (AfDB) and private investors.
Uganda’s Energy Minister Ruth Nankabirwa welcomed the announcement, calling it “an opportunity to achieve 100% electrification by 2040 without increasing emissions.”
Jobs, Innovation, and Local Industry
Analysts say the funding could generate tens of thousands of jobs, especially in solar assembly, battery storage, and transmission infrastructure.
Local universities in Nairobi, Kampala, and Dar es Salaam are expected to benefit through EU-backed innovation grants, encouraging startups in green technology and energy storage solutions.
Environmental economist Dr. David Karanja told Urban Gazette Online:
“This is about more than lights and grids. It’s about building an ecosystem — entrepreneurs, engineers, and communities who own their energy future.”
Challenges and Skepticism
However, critics warn that large-scale infrastructure projects often move slowly due to bureaucracy and uneven governance. Past EU-African energy partnerships have struggled with red tape and accountability gaps.
Civil society groups urge transparency in fund allocation. “We must avoid elite capture of green investments,” says Rosemary Achieng, a renewable-energy activist from Kisumu. “Communities must have a voice in where and how the projects are implemented.”
Another challenge is currency volatility. As East African shillings fluctuate against the euro, long-term financing and repayment models could face risks if not properly hedged.
The Bigger Picture
This investment is part of the EU’s effort to counterbalance China’s Belt and Road influence by offering “sustainable, transparent partnerships.” It also aligns with Africa’s Agenda 2063 goals on sustainable development and climate resilience.
The EU hopes to connect 100 million people to affordable energy by 2030 — a goal that, if achieved, could reshape the continent’s economic and environmental trajectory.
For East Africa, this means more than green power; it means a chance to leapfrog into a low-carbon industrial era and prove that sustainability can drive growth.
