Report shows global energy transition slows as Kenya leads Africa gains

Business
By Ronald Kipruto | Jun 18, 2026

A new report has revealed that the global energy transition is becoming more fragmented as geopolitical risks rise.

This is even as record investment fails to translate into stronger system readiness.

The Energy Transition Index 2026, published by the World Economic Forum in collaboration with Accenture, realeaded onThursday,June 18, found that electricity demand grew by 3 per cent in 2025, driven by electrification, cooling, digital infrastructure and artificial intelligence.

The report said global momentum has slowed as transition readiness declined for the first time in more than a decade despite $3.3 trillion in total energy investment, including $2.3 trillion in clean energy.

“The energy transition is not reversing, but it is fracturing,” said Roberto Bocca, Head of the Centre for Energy and Materials at the World Economic Forum. “In a more volatile geoeconomic environment, security, affordability and resilience are central to sustaining progress.”

The report linked rising instability to supply risks and infrastructure bottlenecks, including disruption in the Strait of Hormuz, which it said exposed vulnerabilities in import-dependent economies and exposed concentration risks in clean energy supply chains.

It said Sub-Saharan Africa recorded the strongest regional gains in transition progress, becoming one of only two regions to improve readiness this year.

The gains were driven by regulatory reforms, rising investment, improved energy access and progress in innovation.

Kenya emerged as the region’s strongest improver, supported by rising research and development spending, which doubled from 0.4 per cent to 0.8 per cent of gross domestic product between 2022 and 2023.

The report ranked Kenya 87th globally, noting strong emissions and resilience performance but weak energy equity and declining policy stability.

Nigeria ranked 80th globally, while South Africa and Namibia ranked 69th and 61st respectively.

South Africa led the region on readiness, supported by regulation and financial investment flows, though structural weaknesses continued to limit progress.

The report said Nordic countries retained the top three global positions, while Singapore rose 10 places to 42nd. China ranked 14th, India 70th and the United States 19th, reflecting uneven progress across major economies.

It said clean energy investment remained heavily concentrated, with about 75 per cent flowing to a small number of economies, even as emerging markets accounted for 80 per cent of global electricity demand growth.

“The energy transition is entering a more disruptive and challenging phase,” said Muqsit Ashraf, Global Lead for Industry and Enterprise at Accenture, adding, “Organisations that use technology and AI to improve adaptability will be better positioned to navigate uncertainty.”

The report said Latin America and the Middle East and North Africa weakened, while Saudi Arabia posted gains driven by financial backing and renewable deployment.

Share this story
Mwalimu Sacco taps NCBA to rev up salary processing
Teachers and members of Mwalimu Sacco are set to experience faster salary processing following the launch of "Salo Xpress," a digital payroll management solution powered by NCBA Bank.
Why firms are seeking spaces that drive impact, not just transactions
Kenya’s business events and Meetings, Incentives, Conferences and Exhibitions (MICE) industry is growing to match global standards, forming a major part of the country’s tourism sector.
Ruto calls for equal partnerships with wealthy nations, says era of aid is over
President William Ruto has declared that Africa will no longer engage with wealthy countries on terms of dependency, calling instead for partnerships built on sovereign equality and mutual benefit.
Report shows global energy transition slows as Kenya leads Africa gains
A new report has revealed that the global energy transition is becoming more fragmented as geopolitical risks rise.
Why the right car battery is no longer just about engine size
Modern vehicles now depend heavily on electronic systems that demand more power, more stability and more intelligence from a component many drivers still treat as basic.
.
RECOMMENDED NEWS