Financing the Renewable Energy Transition in Sub-Saharan Africa: A Systematic Review of Investment Instruments, Market Models and Institutional Constraints

Abstract Sub-Saharan Africa possesses substantial renewable energy resources yet attracts a disproportionately small share of global clean-energy investment, leaving persistent financing gaps that constrain energy access and transition objectives. This systematic review examines financing instruments, renewable energy market models, investment outcomes and institutional conditions across Sub-Saharan Africa. A PRISMA-guided search identified 198 records; after removal of 88 outdated or duplicate records, 110 were screened, 66 excluded, 44 full texts assessed and one further document excluded, leaving 43 studies for synthesis. Evidence was extracted using a structured review matrix and synthesized through thematic analysis supported by NVivo, alongside descriptive examination of financing instruments and technologies. Public and concessional capital including government grants, concessional loans and development-partner finance emerged as the most prominent financing mechanisms. State-led and donor-supported models enabled project initiation but did not consistently create competitive, self-sustaining markets or mobilize durable private investment. High cost of capital, currency exposure, off-taker risk, policy inconsistency, weak utility creditworthiness and limited institutional capacity constrained bankability. Decentralized systems, particularly mini-grids and off-grid solar, were important for access but faced tailored financing and regulatory barriers. The review concludes that financing instruments are necessary but insufficient: investment effectiveness depends on institutional credibility, coherent policy implementation, domestic financial-market development and system-level reform.