Foreign Investment Fuels Africa's Clean Energy Sector Growth in 2023
Key Ideas
- Foreign investment in Africa's clean energy sector remained strong in 2023, driving sustainability momentum on the continent.
- $175 billion worth of greenfield projects were announced in Africa, with Mauritania's AMAN green hydrogen project leading as the largest globally.
- In addition to green hydrogen projects, significant investments were made in e-mobility, solar, wind energy, chemicals, and electronics sectors.
- The African Continental Free Trade Agreement Investment Protocol adopted in 2023 is expected to boost intraregional FDI, especially in services and manufacturing industries.
The World Investment Report by the UN Trade and Development unveiled in June 2023 showcases the resilience of foreign investment in Africa's clean energy sector, despite a 3% decrease in overall FDI inflows. The report highlights a growing trend of global greenfield megaprojects in clean energy across Africa. One standout project is Mauritania's AMAN green hydrogen project, aiming to generate 30GW from wind and solar, with an investment expectation of US$34 billion. This project, developed by CWP Global, marks a significant advancement in clean energy initiatives on the continent. Apart from green hydrogen projects, substantial foreign investments were made in e-mobility, solar, wind energy, chemicals, and electronics sectors, indicating a diversified approach towards sustainable development. The report also emphasizes the potential impact of these projects on job creation, with the possibility of generating an additional 200,000 jobs in the region. Furthermore, the African Continental Free Trade Agreement Investment Protocol is projected to enhance intraregional FDI, particularly in services and manufacturing industries, fostering economic growth and value addition within the region.