Cape Town, South Africa — Germany is considering increased investment in Africa’s energy industry, with a commitment of €4 billion earmarked for renewable energy initiatives by 2030. This includes fostering collaborations in hydrogen and natural gas as part of the EU’s Global Gateway program.
These investments aim to enhance conditions for private sector involvement and infrastructure development, underscoring Germany’s commitment to sustainable development and economic growth across the continent.
Last December, Germany pledged R5.2 billion to assist South Africa in transitioning its energy sector and enhancing mutual collaboration between the two countries. The funds aim at supporting South Africa’s move away from coal toward more sustainable, renewable energy options, thereby tackling ecological issues as well as bolstering energy safety.
Earlier this month, the EU declared an investment of €4.7 billion in South Africa aimed at backing green energy projects and vaccine manufacturing. This reflects a wider dedication to promoting sustainability across the area.
To bolster these endeavors, Germany and the African Development Bank declared collaborative projects last month aimed at speeding up energy accessibility and boosting private enterprise throughout Africa. This collaboration encompasses backing for the Mission 300 initiative, with the objective of supplying electrical power to 300 million people in Africa by the year 2030, along with increased funding opportunities for young entrepreneurs.
In the meantime, German businesses remain upbeat about their future in South Africa, reflecting an increasing trust in the nation’s economic steadiness, broadening trading possibilities, and the likelihood of enduring collaborations within the realms of energy and industry.
According to a recent study conducted by KPMG Germany along with the Southern African-German Chamber of Commerce and Industry, 64% of German businesses anticipate an increase in revenue in South Africa. Additionally, 44% of these firms plan to make investments in the nation over the coming three years.
Germany has already shown significant involvement in Africa’s burgeoning green hydrogen industry, acknowledging the continent’s substantial capacity for generating renewable energy. In Namibia, German companies have collaborated on the $10 billion Hyphen Green Hydrogen Project, which seeks to utilize the nation’s plentiful solar and wind assets to create green ammonia intended for international markets.
Moreover, Germany secured €150 billion earlier this year via the Global Gateway initiative to boost its energy efforts in Africa, particularly emphasizing green hydrogen development. The region has the capacity to generate up to 165,000 terawatt-hours of green hydrogen each year—significantly surpassing Germany’s anticipated requirement for 2030.
In addition to focusing on renewable projects, Germany is also keen on partnering with African nations regarding natural gas and blue hydrogen development. This strategy aligns with Germany’s revised Africa policy directives, highlighting the significance of African energy sources—such as renewable power, green hydrogen, and under certain circumstances, natural gas—in facilitating an effective energy shift across both continents.
"Germany’s increasing financial commitment to Africa's energy industry marks a significant move towards sustainable progress and economic expansion. By prioritizing investments in green hydrogen, renewable energies, and ethical use of fossil fuels, Germany aims to become an essential collaborator in shaping Africa's energy landscape. The upcoming African Energy Week in 2025 will be crucial for fostering these collaborations, opening up fresh prospects, and speeding up Africa's journey towards cleaner energy," stated Tomás Gerbasio, who serves as the Vice President of Commercial and Strategic Engagement at the African Energy Chamber.
The forthcoming African Energy Week (AEW) 2025: Invest in African Energies conference offers a key opportunity for German investors to discover and participate in energy ventures throughout the continent. Building upon past successes, AEW 2025 seeks to propel this progress further by providing an interactive forum where leaders, policy makers, and stakeholders can tackle both local and international energy issues while promoting Africa’s role as a frontrunner in sustainable energy initiatives.
