Germany makes major investment pledge in Africa’s energy future
As Germany eyes expanded investments in Africa’s energy sector, the upcoming African Energy Week 2025: Invest in African Energies serves as an opportunity to advance partnerships and unlock new opportunities, says energy advocacy group African Energy Chamber.
Germany’s investments in Africa’s energy sector include pledging €4-billion for green energy projects by 2030 and advancing hydrogen and gas partnerships through the EU’s Global Gateway initiative.
These investments aim to enhance conditions for private-sector involvement in infrastructure development, underscoring Germany’s commitment to sustainable development and economic growth across the continent.
In South Africa, Germany committed R5.2-billion in December last year to support the country’s energy transition and deepen bilateral cooperation. This funding is directed towards facilitating South Africa’s shift from coal to renewable-energy sources, addressing both environmental concerns and energy security.
In March, the EU also announced a €4.7-billion investment in South Africa to support green energy initiatives and vaccine production, reflecting a broader commitment to sustainable development in the region.
Further strengthening these efforts, Germany and the African Development Bank announced joint initiatives in February to accelerate energy access and private-sector growth across Africa. This partnership includes support for the Mission 300 initiative, which aims to provide electricity access to 300-million Africans by 2030 and expanded financing for youth entrepreneurship programmes.
Meanwhile, German companies are optimistic about their prospects in South Africa, signalling growing confidence in the country’s economic stability, expanding trade opportunities and the potential for long-term partnerships in energy and industrial sectors.
A recent survey by professional services firm KPMG Germany and the Southern African-German Chamber of Commerce and Industry, or AHK Southern Africa, revealed that 64% of German companies expect rising revenues in South Africa, with 44% planning to invest more in the country within the next three years.
Investments in Africa
Germany has already been active in Africa's green hydrogen sector, recognising the continent’s vast potential for renewable-energy production. In Namibia, German investors have partnered on the $10-billion Hyphen Green Hydrogen Project, aiming to harness the country’s abundant solar and wind resources to produce green ammonia for global export.
Additionally, Germany mobilised €150- billion through the Global Gateway initiative earlier this year to enhance its energy engagement in Africa, with green hydrogen as a key focus.
West African countries alone have the potential to produce up to 165 000 TWh of green hydrogen a year – far exceeding Germany’s projected demand for 2030, the energy chamber says.
Beyond renewable initiatives, Germany remains open to cooperating with African countries on natural gas and blue hydrogen production. This approach reflects Germany's updated Africa policy guidelines, which emphasise the importance of African energy resources – including renewable electricity, green hydrogen and, under specific conditions, natural gas – for a successful energy transition in both Africa and Europe.
“Germany’s growing investment in Africa’s energy sector signals a transformative shift toward sustainable development and economic growth,” unlocking new opportunities and accelerating Africa’s energy transition, said African Energy Chamber commercial and strategic engagement VP Tomás Gerbasio.
“With a clear focus on green hydrogen, renewables and responsible fossil fuel cooperation, the country is positioning itself as a key partner in Africa’s energy future.”
Gerbasio explains that African Energy Week 2025 will serve as a vital platform to advance these partnerships, unlocking new opportunities and accelerating Africa’s energy transition.
The upcoming conference – which takes place from September 29 to October 3, in Cape Town – presents a strategic platform for German investors to explore and engage with energy opportunities across the continent.
African Energy Week 2025 aims to drive forward the momentum established in previous years, offering a dynamic space for leaders, policymakers and stakeholders to address regional and global energy challenges while advancing Africa’s position as a leader in sustainable energy solutions.
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