Across Africa, the growing demand for data, internet connectivity, and reliable communication services is fueling a dramatic expansion in the telecom industry. This expansion brings with it a significant challenge a dramatic rise in energy consumption. The way the sector powers its operations is not just a financial consideration; it’s a matter of sustainability, climate responsibility, and securing the future of connectivity for the continent.

Recently, Vodacom, one of Africa’s largest telecom providers, made headlines by becoming the first multinational telecom firm on the continent to power its operations entirely with renewable energy. This milestone signals a growing awareness within the industry of the necessity to move toward green energy. The significance of this transformation cannot be overstated especially in a context where growing energy demands are straining many already overburdened power grids.

The telecom industry is a true powerhouse for digital transformation across Africa. With an average annual internet penetration growth rate of 16.7% since 2005 twice the global average, according to the International Telecommunication Union (ITU) Africa is rapidly closing the digital divide. Currently, there are over 1.2 billion mobile connections across the continent as of 2024, driven by the growing popularity of smartphones and the rollout of 4G and 5G networks. This dramatic expansion brings with it a heavy energy cost.

For instance, Vodacom reported using 2,076 GWh of energy in its last fiscal year, with 1,275 GWh stemming directly from purchased electricity the amount a small city might consume in a year. The majority of this energy powers its mobile towers and data centers the very backbone of modern communication. At the same time, these facilities are the sector’s largest contributors to carbon emissions. According to a July 2024 KPMG report, Chasing Net Zero: Are the ICT Sector Plans on Track?, the industry’s greatest emissions come from its data centers and base stations. And as data usage surges alongside growing connectivity, energy consumption is following a dramatic upward trajectory making the move toward renewable energy not just desirable but imperative.

The case for adopting renewable energy in Africa’s telecom sector is more than a policy option it’s a moral, financial, and ecological necessity. Traditionally, the industry has relied on fossil-fueled power, predominantly diesel generators, especially in rural or off-grid locations where reliable grid power is scarce. This reliance comes with heavy penalties for both the climate and the financial bottom line.

Fossil-fueled generators produce significant greenhouse gas emissions, adding to climate change. Furthermore, many African power grids are unreliable, frequently causing outages and service disruptions. This has forced companies to rely even more on diesel generators, fueling both their emissions and their operational costs.

Vodacom’s announcement that 100% of its purchased electricity now comes from renewable sources a total of 906 GWh stands as a powerful precedent for its peers across Africa. This transformation was made possible through a combination of on-site solar installations, power purchase agreements, and renewable energy certificates. It shows that large enterprises can significantly reduce their carbon footprint while retaining operational stability a precedent that resonates far beyond the borders of a single country. Furthermore, by making the move toward green energy, telecom companies align their operations with the goals outlined in the Paris Agreement and contribute directly toward a sustainable future for the continent.

Furthermore, this growing reliance on clean energy can produce a ripple effect, extending its benefits to the broader community. The employment opportunities stemming from solar and wind installations whether related to maintenance, operations, or technical support can aid in developing local skills and strengthening the green energy workforce. At the same time, companies can serve as role models, demonstrating to their peers and regulators that a clean-energy future is not just desirable it’s entirely realistic.

Renewable energy isn’t just a way to reduce emissions it’s a powerful solution to a major operational challenge in Africa’s telecom industry: unreliable power supply. The majority of the continent’s power grids are frequently disrupted by outages or blackouts, adding additional financial pressures to companies and fueling their reliance on diesel generators. This approach, while convenient in the short term, is both costly and environmentally unsound in the long term.

The growing popularity of decentralized renewable energy solutions solar-powered mobile towers, microgrids, and battery storage is turning this challenge into an opportunity. These systems enable companies to produce their own energy directly on site, reducing their reliance on unreliable grid power and strengthening their resiliency. This not only cuts operational costs but also helps make service delivery more reliable a key consideration for growing customer satisfaction.

5G networks, in particular, are up to 90% more energy efficient than their 4G counterparts. Nevertheless, their rollout involves adding a large number of base stations, which further increases total energy demand. This is where decentralized solar power and battery storage come into play. These innovations enable the industry to keep up with growing data usage without adding to its carbon footprint. The result is a more sustainable and resilient network for both companies and their users.

The move toward renewable energy brings with it significant economic and social rewards for Africa’s telecom industry. First, companies can realize substantial cost savings over time. While solar and battery storage systems typically require high upfront investment, their operational costs are much lower. This means that companies can reduce their ongoing expenses and, in many cases, reinvest these profits back into their networks strengthening coverage and service delivery in previously underserved areas.

Furthermore, this transformation directly contributes to financial and social empowerment across the continent. Reliable and low-cost communication services enable greater financial participation, education, health care delivery, and civic engagement. For instance, the success of financial technology platforms, from M-Pesa in Kenya to small payments services across the region, is directly tied to a strong and resilient network. Providing clean energy to keep those networks up and running helps empower individuals, entrepreneurs, and communities.

Additionally, by extending their clean-energy reach, telecom companies can aid in extending access to electricity more broadly. Currently, less than half the population in many African countries is connected to a reliable power grid. Telecom companies, by employing decentralized solar power, can collaborate with governments and utilities to bring clean, reliable energy to more people a major step toward closing the energy gap and strengthening financial and social empowerment.

While the path toward clean energy for Africa’s telecom industry is clear, the transformation is not without its obstacles. The high upfront investment, limited financing, policy bottlenecks, and shortage of technical expertise can slow progress especially in less-developed or policy-restricted markets. Furthermore, the availability of renewable energy equipment and components can fluctuate due to disrupted supply chains or policy uncertainty.

To make this transformation a reality, policy makers, regulators, financial institutions, and the industry itself must collaborate. Support mechanisms ranging from subsidies, low-interest financing, and simplified regulations can ease the financial hurdle. Public-private partnerships can aid in the delivery of large-scale solar or wind projects. Furthermore, training programs can enable a new generation of engineers and innovators to develop and implement clean-energy solutions across the continent. This collective approach can make a decisive and sustainable transformation possible.

The shift toward renewable energy is not a policy wish or a convenient option it’s a strategic necessity for Africa’s telecom sector. As digital demand surges and climate pressures grow, companies must leverage clean energy to reduce their carbon footprint, cut operational costs, and foster greater financial and social empowerment across the continent.

Vodacom’s move toward 100% renewable energy sets a powerful precedent but it’s just the beginning. By investing in decentralized renewable solutions, employing innovations like 5G, and fostering strong partnerships, the telecom industry can enable a future where clean energy powers both the networks we rely on today and the progress we wish to see for generations to come. This is not just a matter of powering phone signals it’s a matter of powering progress for the continent as a whole.