Policy
Evaluating the future of green hydrogen in Africa
Recent summits highlight growing investments in African green hydrogen, yet debates persist regarding domestic benefits and export dependencies.
Key points
- European net-zero targets drive significant interest in African renewable hydrogen production.
- Critics raise concerns over green colonialism, land use, and water stress.
- Proponents emphasize potential economic gains, green industrialisation, and agricultural applications.
What happened
Discussions at the Africa Green Hydrogen Summit in Cape Town highlighted ongoing debates regarding the direction of the continent's emerging hydrogen sector. While European import demands under frameworks like the RePowerEU Plan have spurred external interest, African governments and research institutions have also actively pursued the technology. Dialogue Earth reported that eight African countries and ECOWAS have established dedicated hydrogen strategies since 2017.
According to International Energy Agency figures cited by Dialogue Earth, Africa possesses the capacity to generate 1,000 terawatts of combined wind and solar potential. This could theoretically yield over 45,000 million tonnes of hydrogen annually. Furthermore, a 2025 report by the German development agency GIZ indicates that the sector could contribute up to USD 150 billion to continental GDP by 2050.
Concerns and critiques
Despite these projections, analysts have voiced apprehensions about resource extraction and export-focused models. Researchers from the Transnational Institute cautioned that foundational technologies like electrolysers remain concentrated outside Africa, potentially locking producing nations into low-added-value export roles. Additional worries centre on competing land and water demands, alongside the diversion of prospective renewable capacity away from local grids, given that countries like Namibia and Mauritania record electricity access rates below 60 percent according to World Bank data.
Conversely, supporters argue that dedicated renewable infrastructure tied directly to hydrogen plants does not displace existing grid supplies. Officials such as Alfonso Medinilla of the European Centre for Development Policy Management noted that African leadership views the market as a genuine commercial opportunity rather than a purely external imposition. Moreover, domestic applications such as green fertiliser manufacturing in Kenya demonstrate pathways toward enhanced food security and industrialisation.
Why it matters
As African nations navigate the transition toward lower-carbon economies, balancing export revenues with domestic energy needs remains a central policy challenge. Energy professionals and investors must weigh the capital intensity of these projects—exemplified by Namibia's prospective industrial pipeline requiring funding exceeding its national GDP—against long-term socio-economic returns. Ensuring transparency and local participation will dictate whether the hydrogen economy successfully supports broader continental development.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
Context from CEII
Policy sets the direction for energy investment: national transition plans, market reforms such as Nigeria’s Electricity Act 2023, and global commitments under the Paris Agreement.
91.9% of people worldwide had electricity in 2024Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
