Energy

Africa is poised to become a global leader in green hydrogen production, with challenges to overcome. (Image source: Adobe Stock)

Africa is poised to play a crucial role in the global green hydrogen market, with 41 projects projected for development in the next five years, according to a new report by the Energy Industries Council (EIC), a leading global trade association that provides data, insights, and events

However, the EIC warns that the hydrogen industry in Africa faces significant hurdles, such as securing offtake agreements, creating regulatory frameworks, and building reliable infrastructure.

The Africa OPEX Report 2025 highlights that North African nations, including Egypt, Algeria, and Morocco, are at the forefront, capitalizing on their abundant sunshine to drive green hydrogen production and export infrastructure investments.

Africa's hydrogen potential

These countries’ strategic positions across the Mediterranean from Europe—where Germany, Austria, and Italy plan to repurpose 3,300 km of existing gas infrastructure—are set to facilitate the import of 4 million tonnes of green hydrogen annually. Egypt’s National Green Hydrogen Strategy, for example, aims to capture 8% of the global hydrogen market and produce 10 million tonnes of green hydrogen annually by 2050, much of which will be exported.

Neil Golding, EIC’s director of Market Intelligence, urged caution in viewing the sector’s growth. “While the longer-term outlook looks positive for the hydrogen sector, no commercial-scale project has yet reached a final investment decision,” he said. “Offtake agreements need to be signed, and demand created for the projects to be commercially viable. At the same time, we see the need for regulatory frameworks to be established and the development of robust infrastructure.”

He further emphasised, “What is clear is that North Africa is well placed to support Europe’s hydrogen ambitions and could become a potentially significant supplier of the molecule in the future. Financial support is also coming in the form of EU grants for some African countries, notably Namibia and South Africa, across the hydrogen value chain, which points to a positive outlook for the sector.”

The report, written by EIC analyst Aqilah Shahruddin, provides an extensive analysis of Africa’s energy landscape, covering renewable energy projects, carbon capture, energy storage, and traditional sectors like oil, gas, and thermal power.

Africa’s vast resources and low production costs make it an ideal location for scaling green hydrogen production, powered by renewable sources like solar and wind. The Africa Green Hydrogen Alliance, which was launched in 2022 and includes Egypt, Kenya, Mauritania, Morocco, Namibia, and South Africa, aims to position the continent as a global leader in the sector.

According to the report, 41 hydrogen projects are expected to begin development by 2030. Sub-Saharan Africa is also advancing in the green hydrogen space, with Namibia spearheading large-scale projects. Namibia’s US$10bn hydrogen initiative will generate 15,000 construction jobs and 3,000 permanent positions. To the north, Mauritania’s Aman and Nour projects are expected to generate 40 GW of power for hydrogen production.

Despite the enormous potential, the report highlights several challenges to unlocking Africa’s green hydrogen potential, including the need for major infrastructure investments—such as pipelines, ports, and export facilities—and clear policy frameworks and regulatory support to attract investment.

The report stresses that the high upfront costs of green hydrogen projects necessitate international cooperation and financing initiatives. Europe’s REPowerEU Plan, which seeks to reduce dependence on Russian gas and aims to import 10 million tonnes of green hydrogen annually from Africa, signals that efforts are already underway. However, the report underscores that additional targeted funding and collaboration will be essential to scaling up hydrogen production in Africa.

Rebecca Groundwater, EIC’s head of external affairs, remarked, “If anything, this report, like many others the EIC produces, is a clear case for supply chain companies to look around the globe for opportunities rather than limiting themselves to markets they’re traditionally active in. This requires, of course, getting out of the comfort zone and for governments to help businesses understand different international markets, and Africa is no exception to that.”

She continued, “But of course, for businesses in Europe and elsewhere to move to Africa, there needs to be the right regulatory and financing conditions that help propel Africa’s hydrogen and, indeed, cleantech potential. But capital isn’t ample in Africa, and hence the need for international collaboration to open new financing channels in the continent.”

The green hydrogen industry is closely linked to Africa’s broader renewable energy growth. The report notes that 61.1 GW of renewable energy capacity is currently operational across the continent, with substantial investments in solar and wind. South Africa leads in solar capacity with 59 operational solar farms, while North African countries like Egypt and Morocco are driving wind energy expansion, adding 9 GW of wind capacity to the grid by 2024.

The East Africa Energy Cooperation Summit showcases investment potential, innovation, and regional collaboration for transforming the region’s energy sector. (Image source: EnergyNet)

With data centres projected to consume 20% of global energy by 2050, is East Africa on the brink of a global investment surge, driven by untapped businesses and unmatched energy potential?

The region's untapped energy resources, alongside a thriving business landscape, offer a golden opportunity for investors.

In 2024, at the EnergyNet’s Powering Africa Summit in Washington DC, USA, MARA Holdings marked its entry into East Africa with a significant memorandum of understanding (MOU) with the government of Kenya. This agreement highlights the region's growing investment attractiveness and signals the start of an era where independent power producers (IPPs) could find greater commercial viability.

The East Africa Energy Cooperation Summit (EA-ECS), taking place on 29-30 January in Arusha, Tanzania, brought together energy leaders, IPPs, and EPCF stakeholders to explore the vast investment opportunities and innovations emerging in East Africa. Key players such as Africa Data Centres and iXAfrica are at the forefront, contributing to a growing regional energy market. The summit, led by the East African Community (EAC) Secretariat, served as a vital platform for discussing the region’s potential, with a focus on energy access, resource wealth, and investment opportunities.

The summit also showcased the importance of regional collaboration, with the EAC playing a pivotal role in bringing together policymakers, investors, and energy sector stakeholders to promote deeper integration. This collaboration reflects the EAC’s vision of driving industrialisation and enhancing cooperation among member states. Notable success stories, such as the Ethiopia-Kenya electricity highway, underscore the positive impact of cross-border energy initiatives in fostering both economic and social development.

Off-takers are increasingly seeking stable, diversified energy sources to support growing industries, especially in mining and digital infrastructure. The summit’s agenda highlighted the importance of maintaining grid stability to ensure sustained industrial growth, while also promoting commercial and industrial (C&I) energy generation.

Andrea Malueth, deputy secretary general (Infrastructure, Productive, Social & Political Sectors) of the East African community secretariat, "Energy is a pillar for development and growth and is crucial for the functioning of the economies of the EAC Partner States. The East Africa Energy Cooperation Summit will serve as the ideal platform for advancing projects and bringing tangible changes in the industry."

The EA-ECS also attracted high-level leaders from across the EAC, who joined private sector developers driving the future of the region’s energy infrastructure, catering to over 500 million people. Elisa Palmioli, producer at EnergyNet, highlighted the long-term potential of the region, stated, “Ten years from now, the EAC’s middle classes will have more job stability, more opportunities, and more disposable income than ever before. New railways, industries, ports, and tourism will position the region as the number one investment destination globally, taking the title back from both parts of Asia and Latin America.”

The summit underscored East Africa’s bright future, offering a compelling narrative for global investors looking to tap into one of the most promising energy markets in the world.

The ‘Mission 300’ initiative marks partnership between the African Development Bank, the World Bank Group, and global allies. (Image source: Adobe Stock)

Dar es Salaam hosts Africa Heads of State Energy Summit, launching Mission 300 to electrify 300 million Africans by 2030 through global partnerships

In a continent where millions still live without electricity, a revolutionary initiative is set to ignite hope. Next week, leaders from Africa and beyond will convene in Dar es Salaam, Tanzania, for the inaugural Africa Heads of State Energy Summit. The two-day gathering on January 27-28 will mark the launch of "Mission 300" (M300), an ambitious project aimed at connecting 300 million Africans to electricity by 2030.

A joint effort by the African Development Bank (AfDB) and the World Bank Group, alongside global partners, M300 seeks to address Africa’s energy deficit using innovative technologies and financing mechanisms. This initiative comes at a critical time when 600 million Africans—83% of the world’s energy-deprived population—lack access to electricity.

“No economy can grow, industrialise, or be competitive in the dark,” said Dr Akinwumi Adesina, president of the AfDB. “This partnership is a game changer for Africa’s development.” M300, first announced during the 2024 World Bank/IMF Spring Meetings, also enjoys support from the Group of Seven (G7) and the G20.

The summit will host several African and global heads of state, 1,500 participants, and key private sector representatives. Together, they will chart a course toward universal access to affordable, reliable, and sustainable energy.

The first phase of Mission 300 focuses on Chad, Côte d’Ivoire, the Democratic Republic of the Congo, Liberia, Madagascar, Malawi, Mauritania, Niger, Nigeria, Senegal, Tanzania, and Zambia. These nations account for over half the global population without electricity and a quarter of those lacking clean cooking solutions. Other African countries will follow in subsequent phases.

Scaling energy access

Under the M300 initiative, the AfDB aims to deliver 50 million energy connections through its projects and ten-year strategy. Complementing this effort, the World Bank Group has pledged 250 million connections by 2030. Together, these commitments aim to close Africa’s energy gap while transforming lives.

AfDB’s energy portfolio includes flagship projects such as Kenya’s Lake Turkana Wind Power Project, which added 310 megawatts to the national grid, and the Desert to Power (D2P) initiative, which seeks to transform the Sahel into a solar energy hub. Recent successes under D2P include a US$302.9mn loan to co-finance a solar power plant and interconnection project between Mauritania and Mali, benefiting 100,000 households.

The summit will also highlight energy sector achievements, promote collaboration to accelerate infrastructure investments, and strengthen regional power planning and trade. These efforts align with Africa’s Continental Master Plan and the African Single Electricity Market, both of which aim to streamline energy policies and promote cross-border energy sharing.

Collaborative investments

Global partners are already stepping up. The Global Energy Alliance for People and Planet, alongside The Rockefeller Foundation, has pledged US$10mn for technical assistance on electricity projects across 11 African nations. These efforts will address energy needs in diverse locations, from Nigeria’s urban centers to Madagascar’s remote villages.

World Bank group president Ajay Banga emphasised, “We need action from governments, financing from multilateral development banks, and investment from the private sector.”

More than infrastructure

Mission 300 is about more than just building energy infrastructure. For millions of Africans who have never experienced reliable electricity, it represents hope and transformation. The partnerships forged and commitments made in Dar es Salaam will pave the way for an electrification revolution, driving sustainable development and improving lives across the continent.

As leaders and changemakers gather in Tanzania, they will lay the groundwork for a brighter future—one where Africa’s energy aspirations become a reality, and the dream of universal electricity access is no longer out of reach.

Siemens integrates 950,000 smart meters in Ghana, transforming electricity management and winning 'Best Company in Digital Transformation & Innovation.' (Image source: Siemens)

Siemens achieves integration of 950,000 smart meters in Ghana, revolutionising electricity management, enhancing customer experience, and earning the 'Best Company in Digital Transformation & Innovation' award at the Africa Best Business Awards

This cutting-edge solution is transforming electricity management and advancing digitalisation for the state utility, positively impacting more than 4 million users.

Recognising its pivotal role in driving digital transformation in the region, Siemens was recently awarded the title of 'Best Company in Digital Transformation & Innovation' at the Africa Best Business Awards in Ghana. The smart metering solution, developed for the Electricity Company of Ghana (ECG), digitalizes utility operations from backend systems to consumer interactions, ensuring efficient electricity delivery to 3 million meters serving homes and businesses.

“We’re incredibly proud of this solution and this award, which acknowledges Siemens’ strategic role in transforming Ghana’s economy into a highly efficient digital economy. Through our focus on digitalization, electrification, and automation, Siemens is driving impactful change in the region,” says Kofi Oppong, Siemens Regional Manager, West Africa.

Advantages of the Siemens ECG Metering Management System

“The ECG Metering Management System is a game-changer for the utility, eliminating inefficiencies, solving revenue collection challenges, and ensuring customers across Ghana benefit from digitalisation,” commented Oppong.

The system introduces exceptional customer service features, allowing users to activate electricity automatically after purchasing tokens through Mobile Money wallets. This eliminates the need to manually input codes at home and enables family members abroad to purchase and activate tokens remotely. By providing users greater control over expenses and reducing the risks of service interruptions or blacklisting, the system significantly enhances the customer experience.

On an operational level, Siemens’ solution unifies previously fragmented platforms, enabling smart meters from different manufacturers to function seamlessly under a single universal backend. “Siemens’ solution enables interoperability within the utility’s ecosystem, providing a fully digitalised system with a clear view of customer data,” says Oppong. This transparency improves analytics, forecasting, network optimisation, troubleshooting, and fraud detection.

Progress update

Now in its fourth year of operation, Siemens’ Grid Software Solution has delivered outstanding results, including the integration of 950,000 smart meters, improved revenue collection, enhanced customer satisfaction, and reduced operational and staffing costs. Siemens continues to offer maintenance support, ensuring the sustained success of this transformative project.