Dejan Kastelic, Chief Technology Officer at Vodacom Group
Coverage expansion across the continent has given rise to the acceleration of data driven services which are shaping Africa’s digital future. These include fintech services driving financial inclusion, e-health improving access to healthcare and education platforms empowering people, communities and businesses. The growth of data-driven platforms, AI, and digital services is increasing energy demand at pace. Ensuring reliable access to energy is therefore critical to scaling and sustaining this progress.
Vodacom’s recent Decarbonising the ICT Sector report highlights the extent of the challenge. To deliver universal access to affordable electricity by 2030, electricity connections in sub-Saharan Africa would need to reach around 90 million people every year, roughly triple the current rate. Even then, access does not guarantee that the quality of the grid is reliable, as frequent and prolonged outages remain common.
This lack of reliable access to electricity jeopardises connectivity, economic activity, productivity and essential services. For the ICT sector, this challenge is especially acute. Unstable energy systems force operators to invest heavily in backup capacity to maintain service continuity, driving up costs, increasing complexity and impacting decarbonisation efforts. As economies become increasingly data-driven and interconnected – where uptime is critical – unstable power threatens investment and growth.
The true cost of energy insecurity
In the absence of a stable grid electricity supply, companies have had to adapt. For mobile network operators (MNOs) such as Vodacom, ensuring network resilience is central to providing connectivity services that millions rely on daily. In many markets, this has meant investing heavily in backup power solutions, including diesel generators, to keep operations running during outages. Diesel generators have become the default solution as they are proven, portable and dependable, however that model is increasingly difficult to sustain. Diesel is costly, exposed to fuel-price and currency volatility, operationally intensive and carbon-intensive. As digital demand rises, so too does the urgency of finding a more sustainable energy solution.
What solutions are within reach?
Most people without electricity (over 80%) live in rural areas, according to the report. In these areas, mini-grids and stand-alone solar home systems are considered the most cost-effective renewable energy solutions. But for the telecommunications sector, powering mobile base stations through mini-grids requires lower connection costs, supported by grants or public funding to strengthen the business case. Using decentralised energy systems also depends on closer collaboration between MNOs and developers to secure energy transition financing and manage logistical challenges, with MNOs acting as reliable off-takers to boost bankability. Run-of-river hydropower also offers a competitive, reliable renewable option, but relies on the feasibility of sites. Solar photovoltaic, advanced battery technologies for base station sites, such as sodium-ion, and a combination of diesel/renewable energy systems during transition phases can help to enhance the reliability of renewable energy solutions – only if cost, security, and technical integration concerns are addressed.
In addition, developing a robust renewable energy market is key to reducing grid carbon intensity and supporting decarbonisation efforts. Implementing power purchase agreements, renewable energy certificates and green tariffs can promote renewable energy investments and facilitate the transition to cleaner grids. This includes new commercial models, advances in storage technologies, and integrated energy architectures that can be deployed rapidly across diverse operating environments. This shift aids in reducing emissions and strengthens energy security by cutting costs and decreasing dependence on imported fossil fuels.
When renewable energy is deployed to support digital infrastructure, it can generate broader socio-economic gains. For example, mini-grids and decentralised energy systems can power not just telecommunications operations but also surrounding communities, allowing clinics to operate more effectively, schools to access digital tools, and small businesses to grow. In this way, energy access strengthens digital inclusion and creates a spillover effect across local economies.
Barriers are holding the continent back
However, scaling access to renewable energy requires more than corporate investment. Many African power utilities face financial constraints, ageing infrastructure and high transmission losses. Regulatory environments can be complex and discourage private sector participation. Mechanisms that enable businesses to procure renewable energy remain underdeveloped in some African markets.
Overcoming these barriers calls for coordinated action. Governments, regulators, and the private sector must work together to modernise energy systems, expand generation capacity and create enabling frameworks for investment in clean power. Public-private partnerships will be critical in mobilising capital and delivering infrastructure at scale.
MNOs, as major energy consumers and digital enablers, are pivotal to this transition. Since telecommunications companies operate where communities are located, they can serve as anchor customers for renewable energy projects, improving their commercial viability and accelerating market development. By aligning business needs with development goals, they can help accelerate the development of more resilient energy systems while supporting connectivity ambitions.
An opportunity Africa cannot afford to miss
With abundant renewable energy resources and growing climate finance, Africa has the opportunity to advance quickly to low-carbon, more efficient energy models. To achieve this, renewable energy must be viewed as critical infrastructure with policy, investment and innovation aligned around this objective.
Africa’s digital transformation has already demonstrated what is possible when the necessary infrastructure is in place. The rise of mobile money, the expansion of connectivity and the growth of digital services have reshaped economies and improved lives across the continent. The future of digital infrastructure must be built on a more resilient, sustainable energy foundation prioritising universal access to sustainable energy. If we align policy, capital and innovation around that objective, we can expand connectivity, strengthen resilience and accelerate inclusion, while building a lower-carbon future for the continent.
Source: Vodacom Group.
Photo credit: Vodacom Group.
