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Trump’s Energy Policies Reshape Africa’s Power Financing Landscape

Trump’s Energy Policies Reshape Africa’s Power Financing Landscape

In just over 100 days back in the White House, former U.S. President Donald Trump has already made sweeping changes with far-reaching consequences for Africa’s energy ambitions.

While his policies may be domestically popular, for Africa — particularly in the electricity sector — the outcome is proving bittersweet.

One of the most significant shifts was the termination of Power Africa, a flagship initiative launched in 2013. Over its decade-long run, it supported 150+ energy projects, added nearly 15,500 megawatts of capacity, and brought electricity to over 216 million people. The abrupt cancellation, justified by Trump’s cost-cutting agenda under the Department of Government Efficiency led by Elon Musk, leaves a critical funding gap, especially for rural electrification across Nigeria and East Africa.

Trump’s administration has also drastically cut U.S. contributions to global climate funds, including a $4 billion withdrawal from the UN Green Climate Fund and an exit from Just Energy Transition Partnerships (JETP), impacting nations like South Africa. These moves risk slowing progress toward Africa’s NDC targets and stalling renewable projects vital to achieving cleaner, affordable power access.

Meanwhile, Trump’s 10% tariffs on renewable energy inputs, including solar and battery materials, are reshaping global supply chains. African countries reliant on imported components now face higher costs, jeopardising projects and encouraging local manufacturing alternatives — albeit at higher initial investment.

Further complicating matters, a 90-day freeze on U.S. foreign aid has disrupted energy, health, and humanitarian programmes, pushing African governments to reconfigure their budgets and seek new partners. This shift, while painful, may ultimately catalyse stronger African-led financing models.

Institutions like the African Development Bank (AfDB) and Africa50 are stepping up. The AfDB’s past $3 billion commitment to Power Africa and its $1.4 billion investment over five years show its capability to lead. SEFA and Africa50’s recent announcement of a $500 million fund for off-grid projects, with backing from the AfDB and Morocco’s Central Bank, highlights the potential for public-private cooperation.

Despite setbacks, Africa’s energy story is far from over. Trump’s policies have sparked uncertainty, but they’ve also opened the door for African resilience and reinvention. The road ahead may be more complex, but it is also an opportunity for the continent to assert greater control over its energy destiny.

Further Africa

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