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 on hydrogen and natural gas as part of the EU’s Global Gateway program.

These initiatives seek to improve the environment for private sector engagement and boost infrastructure development, highlighting Germany’s dedication to promoting sustainable growth and economic progress throughout the region.

Last December, Germany pledged R5.2 billion to assist South Africa with its energy transformation and enhance their mutual collaboration. These funds aim at supporting South Africa’s move away from coal toward more sustainable, renewable energy options, tackling issues related to the environment as well as ensuring stable power supply.

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 their wider dedication to fostering sustainable growth 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 fostering private-sector expansion throughout Africa. This collaboration encompasses backing for the Mission 300 initiative, targeting the provision of power to 300 million Africans by the year 2030, along with increased funding for young entrepreneurs’ schemes.

At the same time, businesses from Germany express optimism regarding their future in South Africa, reflecting an increasing trust in the nation’s economic steadiness, burgeoning trading chances, and the possibility of enduring collaborations within the realms of energy and industry.

According to a recent study conducted by KPMG Germany and the Southern African-German Chamber of Commerce and Industry, 64% of German businesses anticipate an increase in revenue from South Africa. Additionally, 44% intend 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 immense 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 for international markets.

Furthermore, Germany secured €150 billion via the Global Gateway program earlier this year to boost its energy involvement in Africa, particularly emphasizing green hydrogen development. Individually, Western African nations could 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 continues to be receptive to collaborating with African nations in developing natural gas and blue hydrogen sectors. This strategy aligns with Germany’s revised Africa policy directives, highlighting the significance of leveraging African energy sources—such as renewable power, green hydrogen, and, under certain circumstances, natural gas—for an effective shift towards sustainable energy systems across both continents.

“Germany’s increasing financial commitment to Africa’s energy industry marks a significant move towards sustainable progress and economic expansion. By concentrating specifically on green hydrogen, renewable resources, and ethical collaboration with regard to fossil fuels, Germany aims to become an essential ally in shaping Africa’s energy landscape. The African Energy Week scheduled for 2025 will be instrumental in fostering these collaborations, opening up fresh prospects, and speeding up the continent’s journey towards more sustainable energy sources,” 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 platform for German investors to discover and participate in energy prospects throughout the continent. Building upon past successes, AEW 2025 seeks to propel this progress further, providing an interactive arena where leaders, policy makers, and stakeholders can tackle both local and international energy issues while bolstering Africa’s role as a frontrunner in sustainable energy initiatives.