Study Finds Gaps in Africa’s Renewable Energy Benefits

A new study of wind and solar projects in South Africa and Kenya finds that clean energy investments—nearing $40 billion annually in sub-Saharan Africa—frequently fail to benefit the communities that host them. Researchers identified two patterns: “buying in,” where communities gain ownership stakes or long-term agreements, and “buying out,” where they receive one-time compensation and are excluded from future benefits. In South Africa, renewable-energy companies must provide communities with at least 2.5% ownership. Yet researchers found that communities often have limited say over benefits, which can arrive years after land is surrendered and take the form of infrastructure or services selected by companies. In Kenya, the Lake Turkana Wind Power project restricted pastoralist communities’ access to grazing land, sparking protests and lawsuits. Researchers argue that investors should define fair compensation with communities from the outset, recognizing that land, livelihoods, and cultural practices can matter as much as financial returns.