By Jane Muthumbi, Economic Affairs Officer, Gender, Poverty and Social Policy Division

Eliminating poverty in all its forms and everywhere is a not only key goal of the 2030 Agenda for Sustainable Development, but also a central element of the Political Declaration for the upcoming Second World Summit on Sustainable Development (WSSD) that will be held in November in Qatar.

Although China is currently facing headwinds that could potentially affect its growth, its progress in development is noteworthy. As the largest developing country – by population and economy, the second largest globally, China has made remarkable strides in eradicating extreme poverty, as defined by the World Bank, and achieved Sustainable Development Goal (SDG) 1 – ending poverty in 2020 – a decade ahead of thetarget set by the SDGs.

While Africa has made considerable gains in reducing poverty, progress has slowed in recent years. According to World Bank estimates, the number of people living in extreme poverty in Africa other than North Africa increased by 100 million – rising from 448 million in 2024 to 588 million in 2025.

Despite Africa making the fastest progress in reducing multi-dimensional poverty, millions of Africans still experience simultaneous deprivations in health, education and living standards. Energy poverty is pervasive in much of the continent – more than half of Africa’s population, roughly 600 million people, still lack access to electricity and clean cooking fuels, with sub-regions other than North Africa bearing the brunt.

China’s transition to renewable energy – spurred by the quest to reduce greenhouse gas emissions (GHGs), and the need to diversify its energy mix while ensuring energy security, is a key pillar in the fight against poverty.

As a participant of a recent seminar on the Policy and Practice of Poverty Alleviation through Photovoltaic Projects for Developing Countries held in Lanzhou, China, I was eager to learn how renewable energy has been harnessed to reduce poverty, and how its experience could inform Africa’s poverty reduction efforts.

In Gansu province –  the region with the lowest GDP in China, and home to Lanzhou, a bold and transformative poverty alleviation strategy, underpinned by renewable energy is well underway. Central to the poverty alleviation strategy is a two-pronged approach that aims to improve people’s welfare while contributing to the province’s economic growth through renewable energy.

As part of the strategy, the government provides subsidies to households, most of them poor, to enable them to install solar panels for electricity generation for personal use, and the surplus power generated is sold to the grid. In turn, households receive a guaranteed income – an estimated 3,000 Yuan (about $420) annually for 20 years.

Increasingly, renewable energy is being harnessed for productive activities, including in agriculture, fishing and industry. Agri-voltaics or Agri-PV allows for dual land use – enabling farmers to generate electricity from solar energy while supporting agricultural production that increases productivity and incomes, and reduces rural poverty.

In the Gobi Desert’s unproductive land, solar panels that dot the landscape have been a game-changer in accelerating poverty reduction. Besides generating electricity for the province, surplus power from Gansu province’s impoverished villages’ photovoltaic power stations is sold to other provinces, earning the villages steady incomes while creating economic opportunities in the rural economy, and generating much-needed revenues for the province.

The province’s abundant solar supply has also been harnessed for renewable energy manufacturing, with investments in the sector catalyzing good-paying manufacturing jobs while promoting industrial development. 

What lessons can Africa draw from China’s success in harnessing renewable energy for poverty alleviation?

Structural transformation is integral to poverty reduction. Renewable energy can help accelerate structural transformation on the continent by raising productivity, improving competitiveness and increasing incomes, particularly for the poor. Agri-PV, for example, could boost the sector’s productivity, increase farmers’ incomes and reduce rural poverty, including in energy. With Africa receiving  less than 3 per cent of global energy financing according to UNECA, increasing investment in renewable energy is essential in unlocking the continent’s potential to ensure energy access and security.

A conducive regulatory environment is imperative. In the complex energy sector, a policy environment that fosters the harnessing of renewable energy for poverty alleviation is essential. China’s policies, which encourage local ownership and management of renewable energy assets as well as the distribution of subsidies have been integral in improving people’s welfare.African countries should implement policies to support the development of a conducive environment for the uptake of solar technologies, including by providing incentives aimed at spurring the acquisition of solar panels. In areas with close proximity to the grid, efforts should be made to explore how excess electricity generated by households can be sold to the grid for extra income. Morocco, for example, plans to sell excess electricity supply from its renewable sources to Europe.

Invest in human capital development. Investing in skills development is vital in unlocking skills’ potential to contribute to poverty reduction. Equipping people with the skills needed to operate, maintain and manage solar panels is critical in enabling people to engage in productive activities that increase their incomes while ensuring the long-term viability and sustainability of these technologies.

Africa, with its abundant solar energy – 60% of the global supply, can leverage solar energy for socio-economic development. Indeed, the landscape is favorable as the use of solar photovoltaics becomes more widespread – fueled by the growing affordability and the declining installation and battery costs of solar technologies. The growth in solar photovoltaic imports to the continent also reflects this momentum. Morocco’s Noor-Ouarzazate Solar Complex – a 580 megawatt (MW) project, and the world’s largest concentrated solar facility, reflects efforts to boost solar energy capacity on the continent.

Despite its vast potential, Africa’s current renewable energy capacity – at 70.8 gigawatts (GW) is fairly low. Yet, the continent has tremendous scope to exploit the untapped solar energy potential – estimated at 10 terawatts (TW), not only for reliable electricity for the millions of Africans particularly in rural areas that lack access to electricity, but also for productive use.

To meet the continent’s energy needs by 2030, annual investments of $200 billion over the next five years, including substantial investments from the private sector, will be needed to close the energy financing gap.

If properly harnessed, solar power has the potential to reduce – not just energy poverty, but all forms of poverty, and  accelerate the achievement of SDG 1 on ending poverty & SDG 7 on affordable and clean energy, while laying the foundation for structural transformation that boosts the continent’s growth, and a just energy transition that builds a more inclusive future that delivers for all.