Investment in Africa's Clean Energy Sector and Green Hydrogen Projects Drive Sustainable Growth
Key Ideas
  • Foreign investment in Africa's clean energy sector remains strong, contributing to the continent's sustainability momentum amidst a global decline in FDI inflows.
  • Green hydrogen projects, like the AMAN project in Mauritania valued at $34 billion, are attracting significant investments and showcasing Africa's potential in renewable energy.
  • Besides green hydrogen, e-mobility, solar, and wind energy sectors are also seeing considerable foreign investments, with notable projects in Morocco, Egypt, South Africa, and Zimbabwe.
  • Despite challenges like a sustainable financing gap, Africa's economic growth and young population continue to drive investments, with the AfCFTA Investment Protocol expected to boost intraregional FDI.
A recent report by the UN Trade and Development unveils sustained foreign investor interest in Africa's clean energy sector, particularly in green hydrogen, solar, wind, and battery manufacturing. Although overall FDI inflows to the continent dropped by 3%, greenfield megaprojects in clean energy saw a growing share in 2023. The largest project announced globally was the AMAN green hydrogen project in Mauritania, aiming to generate 30GW from wind and solar. Notably, the continent attracted over $175 billion in greenfield projects, with several countries seeing increases in project numbers. Investments in e-mobility, solar, and wind energy sectors are also on the rise, with notable projects in Morocco, Egypt, South Africa, and Zimbabwe. Despite facing challenges like a sustainable financing gap, Africa's economic growth and young population continue to attract foreign investments. The African Continental Free Trade Agreement Investment Protocol adopted in 2023 is expected to further boost intraregional FDI, indicating promising prospects for the continent's sustainable growth and untapped economic opportunities.
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