Africa is on the brink of a major energy transformation driven by green hydrogen. With its vast renewable energy potential, rising domestic and export demand and global decarbonisation pressures, the continent is uniquely positioned to lead the development of a green hydrogen economy. The African Green Hydrogen Report 2025 highlights Africa’s emerging role and outlines the progress, challenges and opportunities shaping this sector.
Globally, green hydrogen is gaining momentum as countries seek alternatives to fossil fuels for sectors that are difficult to electrify, such as heavy industry, aviation, shipping and long-haul transport. The shift has led to a surge in electrolyser capacity worldwide, from 200 MW in 2019 to over 5000 MW by 2024. In comparison, Africa has lagged behind, with only three small-scale projects currently operational in Egypt, Namibia and South Africa. Together, they contribute just 23,5 MW to the global total. However, more than 40 GW of capacity is at the feasibility stage across the continent, indicating that significant growth is on the horizon.
Several African countries are developing green hydrogen export strategies targeting European and Asian markets. Countries such as Morocco, Tunisia, Namibia, South Africa and Egypt aim to export over 20 million tons of green hydrogen annually by 2050. Achieving this will require overcoming substantial infrastructure challenges. Ports, pipeline systems and transmission networks are underdeveloped, limiting the pace at which large-scale exports can materialise. Without targeted investments in logistics and infrastructure, these ambitious export goals could be delayed.
At the same time, domestic demand for hydrogen is rising. South Africa, Egypt and Morocco already consume over 2 million tons annually, mostly in fertiliser production and heavy industries. Projections suggest that Africa’s total demand could grow to between 6 and 10 million tons by 2050, driven by sectors such as steel, cement, mining and transport. Green hydrogen offers a path to decarbonise these energy-intensive industries, reduce import dependency and strengthen local economies. Countries like South Africa and Namibia are exploring hydrogen-based technologies for green steel production, maritime fuels and grid balancing, while Morocco and Algeria are examining seasonal energy storage options.
The economic potential of a green hydrogen economy is substantial. The hydrogen sector could create one million jobs by 2030, rising to as many as 4,5 million by 2050. Its contribution to GDP could reach $25 billion annually by 2030 and exceed $150 billion mid-century. These forecasts are subject to change, depending on market trends and policy decisions, but they illustrate the transformative power of the sector.
Africa is also rich in the critical raw materials needed for hydrogen technologies. Key countries including South Africa, Zimbabwe, Zambia, Mozambique and the Democratic Republic of Congo hold significant reserves of minerals such as platinum, nickel and copper, which are essential for electrolysers and fuel cells. This natural advantage gives Africa strategic leverage in the global hydrogen value chain, not only as a producer but also as a supplier of components. By developing refining and manufacturing capacities locally, African countries could add significant value to their resources and reduce reliance on foreign imports.
Despite this potential, regulatory gaps are slowing progress. Eight African countries have developed hydrogen strategies or roadmaps, but few have enacted the detailed legal frameworks needed to move projects from concept to execution. Without these mechanisms, investors face greater risk, timelines are delayed and projects struggle to scale. Countries like South Africa and Morocco, which have stronger institutional capacity, are better prepared to deploy green hydrogen at scale. In contrast, others face more pressing challenges related to workforce skills, technical knowledge and energy planning.
Financing remains a major bottleneck. Although European countries have committed substantial public funding to African hydrogen projects, most of the money remains undisbursed. Infrastructure gaps, unclear regulation and lack of project-ready proposals deter private investment. Only a small fraction of large-scale projects have reached the final investment decision stage. Innovative financing mechanisms are beginning to emerge. Namibia’s SDG Namibia One Fund and South Africa’s SA-H2 Fund aim to mobilise $1 billion each by combining public and private capital to unlock larger investments.
Sustainability is another critical area. Green hydrogen projects must carefully manage water use, land access and emissions, especially in arid regions. New certification schemes such as RED II and H2Global are setting stricter environmental standards. Social considerations, including community consultation, land rights and inclusive development, are becoming essential to secure the social licence to operate and avoid conflicts or delays.
To unlock its full potential, Africa’s hydrogen future must be built on strategic collaboration and regional integration. Countries with strong renewable energy resources can partner with those that have industrial demand or port access, creating development corridors that leverage complementary strengths. Aligning regulations across borders would facilitate trade, reduce complexity and attract global investment. Establishing a continent-wide hydrogen infrastructure plan would help coordinate investments, identify priority projects and avoid duplication.
There is also a pressing need to invest in skills development. The growing hydrogen sector will require engineers, technicians, operators and researchers. Standardised training curricula, regional centres of excellence and labour mobility frameworks aligned with the African Continental Free Trade Area will help build and distribute this talent pool. Partnerships between universities, startups and research institutions can further accelerate innovation and localise solutions to African challenges.
Africa’s green hydrogen ambition is bold but achievable. The continent holds many of the ingredients for success − abundant resources, an emerging pipeline of projects and growing domestic demand. The path forward is not without obstacles, but with the right infrastructure, governance and investment, Africa can lead the global transition to clean, renewable fuels.
Source: Africa Green Hydrogen Alliance
To read the full report visit www.tinyurl.com/ykwucuh2
© Technews Publishing (Pty) Ltd | All Rights Reserved
printer friendly version