Sub-Saharan Africa (SSA) is undergoing rapid urbanization, driven by population growth and rural-to-urban migration. This trend has led to a surging demand for energy services, often surpassing the capacity of existing infrastructure. The resulting energy gap exacerbates inequalities in access and contributes to negative environmental impacts. Adopting sustainable energy models is critical to achieving inclusive, low-carbon development. African energy systems are increasingly pivoting toward disruptive renewable energy sources and microgrid-based solutions. Interest in the circular economy has also gained momentum, spearheaded by institutions like the African Development Bank and national finance ministries, alongside modern circular economy principles. Africa is emerging as a pioneer in exploring innovative aspects of the circular economy, particularly in the realm of green hydrogen. This study examines the interplay between rapid urbanization, energy consumption, and CO2 emissions in SSA cities, proposing sustainable solutions rooted in the circular economy and energy transition. Using historical data (2000–2021) and employing statistical and spatial analysis methods, the research projects trends up to 2050. Key indicators include energy consumption, urbanization rates, GDP per capita, and CO2 emissions. Projections indicate that by 2050, SSA’s urban population could reach 1.07 billion, with energy demand rising to 80,480 GWh, placing immense pressure on resources. CO2 emissions are expected to increase to approximately 20 million metric tons per capita. While these forecasts underscore significant challenges, they also reveal opportunities: adherence to circular economy principles could mitigate urban challenges and reduce greenhouse gas emissions. These findings are particularly relevant to governments, investors, urban planners, policymakers, and businesses seeking to address future energy demands within the framework of a circular economy.