Germany Sets Sights on Africa’s Energy Future with Major Investment Pledge

Germany is ramping up investments in Africa’s energy sector, from green hydrogen and renewables to selective fossil fuel cooperation, with African Energy Week 2025: Invest in African Energies set to advance partnerships and unlock new opportunities

Germany is eyeing expanded investments in Africa’s energy sector, having pledged €4 billion for green energy projects by 2030 and advancing hydrogen and gas partnerships through the European Union’s (EU) Global Gateway initiative. 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.

In South Africa, Germany committed R5.2 billion last December 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. Earlier this month, 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 last month 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 programs.

Meanwhile, German companies are optimistic about their prospects in South Africa, signaling 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 KPMG Germany and the Southern African-German Chamber of Commerce and Industry revealed that 64% of German companies expect rising revenues in South Africa, with 44% planning to invest in the country within the next three years.

Germany’s growing investment in Africa’s energy sector signals a transformative shift toward sustainable development and economic growth

Germany has already been active in Africa’s green hydrogen sector, recognizing 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 mobilized €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 annually – far exceeding Germany’s projected demand for 2030.

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 emphasize 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. 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. African Energy Week 2025 will serve as a vital platform to advance these partnerships, unlocking new opportunities and accelerating Africa’s energy transition,” said Tomás Gerbasio, Vice President of Commercial and Strategic Engagement at the African Energy Chamber.

The upcoming African Energy Week (AEW) 2025: Invest in African Energies conference presents a strategic platform for German investors to explore and engage with energy opportunities across the continent. AEW 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.

AEW: Invest in African Energies is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit www.AECWeek.com for more information about this exciting event.