Africa made notable progress in hydropower development in 2024, adding over 4.5 GW of new capacity, more than double the 2 GW installed in 2023, according to the International Hydropower Association (IHA). Hydropower now contributes 20% of Africa’s total electricity generation.

The IHA’s 2025 World Hydropower Outlook describes the continent’s hydropower sector as one of the most promising globally, with only 11% of its technical potential currently utilised.

“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.

In Africa, the report highlights a surge in both private-sector activity and government-backed projects, suggesting the sector is ready to expand further. Major developments in 2024 included the start of operations at Tanzania’s Julius Nyerere hydropower project, the addition of 800 MW at Ethiopia’s Grand Ethiopian Renaissance Dam (GERD), Uganda’s 600-MW Karuma plant coming fully online, and the completion of Cameroon’s 420-MW Nachtigal project.

Despite these advances, the report points out that financing remains a key challenge. Around 62.5 GW of approved projects on the African continent are stalled owing to funding difficulties, with issues such as offtake risk, currency volatility, and bankability concerns slowing progress.

To support existing infrastructure, the African Development Bank (AfDB) launched the Africa Hydropower Modernisation Programme in 2024, providing nearly $10mn for upgrades across eight countries, with technical input from the IHA.

Significant projects under construction include Angola’s 2,172-MW Caluco Cabaça project, part of a national plan to expand hydropower capacity from 1,200 MW to 9,000 MW. In Nigeria, the 3,050 MW-Mambilla project and other schemes aim to unlock 10,000 MW through new and existing dams. Tanzania’s Stiegler’s Gorge project and Cameroon’s Emergence 2035 strategy also prioritise hydropower.

A key sustainability achievement was Zambia’s 180-MW Ngonye Falls project, which became Africa’s first hydropower plant to receive gold certification under the Hydropower Sustainability Standard.

“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,” says Turnbull.

According to the report, all forms of hydropower remain essential to achieving global climate and development goals. However, this year’s outlook shows faster growth in pumped storage hydropower (PSH).

Africa’s total installed hydropower capacity stands at 47.3 GW, which produced 167 TWh of electricity in 2024. The continent also has 3,726 MW of pumped storage capacity, with an additional 349 MW added during 2024.

“PSH is on the rise globally, and rightly so,” says Turnbull. “As the most proven and scalable form of long-duration energy storage, it is essential to deliver the flexibility and reliability that modern electricity systems require. As variable renewables grow, pumped storage will become increasingly critical to balancing supply and demand.”