Africa added more than 4.5 GW of new hydropower capacity in 2024, up from 2 GW in 2023, and hydropower now accounts for 20% of the continent’s total electricity generation, industry organisation the International Hydropower Association (IHA) says.

According to its ‘2025 World Hydropower Outlook’, the capacity added in 2024 more than doubles that added in the preceding three years.

Further, with just 11% of technical potential harnessed, the opportunity for future development of hydropower is one of the most significant in the world.

This report cites 2024 as a year of significant progress for hydropower in Africa, with increased private-sector activity and a doubling in yearly capacity additions pointing to a sector that is ready to scale.

New project momentum is being driven by a wave of mainly privately developed initiatives, supported by major government- backed schemes, the report says.

Several flagship projects reached key milestones in 2024, including Tanzania’s Julius Nyerere hydropower project starting operations; the Grand Ethiopian Renaissance dam, in Ethiopia, adding 800 MW with the commissioning of new units; Uganda’s 600 MW Karuma plant being brought fully on line; and Cameroon completing the 420 MW Nachtigal project.

However, financing remains the sector’s most pressing constraint despite this progress. An estimated 62.5 GW of approved projects are stalled owing to lack of funding, with barriers including offtake risk, foreign exchange volatility and perceived bankability challenges.

Unlocking financing will be essential to realising the continent’s hydropower ambitions, the report shows.

Further, the modernisation of Africa’s ageing hydropower fleet is a growing priority. In 2024, the African Development Bank launched the Africa Hydropower Modernisation Programme, with a $9.72-million budget to support upgrades across 12 privately led projects in eight countries and technical assessment support from the IHA.

The report also highlights growing momentum on the ground, with the 2 172 MW Caluco Cabaça project, in Angola, under construction and with others in planning. Angola’s energy roadmap also aims to grow hydropower capacity from 1 200 MW to 9 000 MW.

The 3 050 MW Mambilla project and other mid- to large-scale projects are under way in Nigeria, with that country’s Sustainable Power and Irrigation Project aimed at unlocking 10 000 MW of capacity through new and existing dams.

In Tanzania, the 2 115 MW Stiegler’s Gorge project is progressing alongside smaller schemes totalling nearly 400 MW. In Cameroon, the government has positioned hydropower at the centre of its Emergence 2035 strategy, with major projects such as the 1 800 MW Grand Eweng in the pipeline.

Additionally, a key sustainability milestone was reached in 2024, as Zambia’s 180 MW Ngonye Falls project became Africa’s first hydropower plant to achieve gold certification under the Hydropower Sustainability Standard, the IHA says.

“Encouragingly, this year’s World Hydropower Outlook shows that global new capacity is accelerating after several years of stagnation. Hydropower is playing an increasingly vital role in the global energy transition,” says IHA president Malcolm Turnbull.

“Continued momentum will require bold policy action, including reforms to reward hydropower’s multiple benefits and faster permitting and, in the face of growing climate volatility, we must build not just clean energy systems, but resilient ones,” he comments.

“As the renewable-energy market continues to grow, this year’s outlook clearly shows that pumped storage hydropower is at the forefront as the world looks to more energy storage. It also reaffirms that all forms of hydropower remain essential to achieving global climate and development goals,” adds IHA CEO Eddie Rich.

Meanwhile, the report shows that Africa has a total installed hydropower capacity of 47.3 GW, which generated 167 TWh in 2024. Its total pumped storage installed capacity is 3 726 MW, while it added 349 MW of pumped storage capacity in 2024.