What do we mean by ‘productive use of renewable energy’ – and why is it critical to African prosperity?

A quiet shift is happening across Africa, slower than some might prefer, yet equally urgent.

It’s the growing realization that renewable energy, especially when harnessed productively, transcends daily conveniences to transform livelihoods, unlocking an alternative reality.

For decades, discussions around energy in Africa have centred on access. Understandably so. Over 600 million people on the continent still lack reliable electricity. But the nuance often overlooked is that access to electricity doesn’t automatically transform lives. What people can do with that electricity, how it powers farms, workshops or small businesses, is what truly drives change.

This is the essence of the “productive use of renewable energy” and it might be one of the most underestimated levers for genuine prosperity.

Mission 300, a recent initiative by the African Development Bank, the World Bank and other partners, has grasped this, launched to connect 300 million Africans to electricity by 2030.

Beyond headline numbers, however, the initiative emphasizes scaling decentralized renewable solutions such as mini grids and solar home systems. More importantly, it ensures that electricity powers more than just households.

It’s about linking energy access to economic opportunity: a cold chain for farmers, a grain mill in a remote village, a corner shop owner and a welder finally able to work beyond daylight hours.

In some places, the impact is already evident. In Nigeria, for example, via the Global Energy Alliance for People and Planet, several solar mini-grid projects have emerged in off-grid communities, which power rice hullers, water pumps, walk-in cold rooms and tailoring shops as well as illuminate homes.

In one pilot, a local entrepreneur tripled her income by switching her freezer from diesel to solar. Beyond energy, the impact reflects on jobs, food security and gender equity. GEAPP brings together financial capital, political delivery, venture support and innovation to reach a tipping point for energy access.

Yet, progress isn’t uniform. In Ethiopia, large-scale hydro projects coexist with communities with little to no energy access. South Africa grapples with a different energy paradox. It has an advanced grid but is hampered by ageing infrastructure and policy inertia.

The Global Energy Alliance has intervened there, funding pilot programmes focused on distributed solar energy for small enterprises and schools. Still, scaling up remains challenging.

Bureaucracy, financing gaps and sometimes a lack of local technical capacity slow the tempo.

As complex as the path seems, it underscores that Africa’s energy journey is about development, unlike wealthier nations where energy transitions often centre around carbon reduction targets.

Each solution must serve dual purposes: it must be green and catalytic, spark income, unlock markets and reduce drudgery.

One-size-fits-all models rarely work on the continent. The best approach could be a small 5-kilowatt solar setup running a mill in a rural village. At other times, it is a hybrid mini grid powering an entire agro-processing cluster.

Here is the thing. We still think too narrowly about what “infrastructure” means. Roads, bridges and ports get most attention but an ice maker powered by solar in a fishing town is infrastructure too – less glamorous and more intimate perhaps but no less transformative.

Financing, of course, is another stumbling block. Many local businesses that could benefit from productive-use energy simply can’t afford the upfront costs. Even where donor programmes exist, they often come with layers of complexity, including long forms and risk-averse banks. More than one entrepreneur has expressed frustration over the hurdles in accessing these grants.

Maybe the question we should be asking is, how do we make renewable energy practically useful? Not just in theory or policy papers but in the messy, everyday grind of local economies?

This is where partnerships matter and not just between donors and governments. Participation from cooperatives, informal traders and even religious groups is crucial. The people closest to the challenge often have the clearest ideas and just need tools, access and a bit of trust.

The Energizing Agriculture Project (EAP) by Rocky Mountain Institute and the Nigerian Rural Electrification Agency is a good example, with its various pilots. For example, Nigeria loses an estimated 45% of its annual food production in part due to poor storage practices.

The introduction of cold storage, via electric refrigeration, is extending the shelf-life of perishables, reducing waste and enabling producers to sell their agricultural goods and seafood for better prices.

EAP is working with cold storage providers such as Ecotutu, ColdHubs, Koolboks and mini-grid connected communities to identify cold storage needs, design scalable business models and source equipment.

If implemented at scale, this programme is expected to create and improve over 150,000 jobs, positively impact the livelihoods of nearly four million Nigerians, and reduce greenhouse gas emissions by 1.4 million tons of carbon dioxide by 2030.

Global discussions tend to frame Africa as either a looming crisis or a market opportunity. Real prosperity is not about narratives, however. It’s about dignity, choice and the quiet power of saying, “I have what I need to build something.”

When used productively, renewable energy gives people that power, literally and figuratively. We cannot afford to let that potential flicker out.