Africa’s hydrogen execution gap set to start closing by 2026

From the newsletter

The continent’s green hydrogen ambitions are expected to translate into real-world impact by 2026, a new report shows. The number of new projects coming online is likely to grow from just two in 2025 to 13 in 2030, with Egypt, Mauritania and South Africa leading the next wave of development.

• African nations hold a dual advantage with abundant renewable energy potential and critical raw materials like platinum group metals, which are vital for manufacturing electrolysers, positioning the continent to play a key role in the green hydrogen economy.

• The report highlights persistent barriers that must be overcome to enable large-scale project delivery and long-term competitiveness.

More details

• Published by GIZ, the African Green Hydrogen Report  was launched during the recent two-day inaugural African Green Hydrogen Summit held in South Africa.

• According to the report, although green hydrogen project announcements are multiplying across the continent, project delivery continues to lag. As of early 2025, just three projects are operational, one each in Egypt, Namibia and South Africa, illustrating the wide gap between ambition and implementation. Five additional projects have entered construction, 39 are in the feasibility stage and 61 remain at the concept level.

• Among the frontrunners, Namibia leads in execution, hosting three of the five projects currently under construction and one already operational. The country is also home to some of the largest proposed hydrogen facilities on the continent. Egypt, which has the highest total number of GH₂ projects, tops the feasibility list with nine and concept-stage projects with 24. Its focus is largely on ammonia and hydrogen production. Morocco follows with a balanced portfolio of concept, feasibility and early construction projects, also concentrated around ammonia and hydrogen.

• South Africa, meanwhile, is focusing on diversified green hydrogen applications, including synthetic fuels, industrial processes and mobility solutions. It hosts five concept-stage projects, six in feasibility and one operational, and shares with Morocco the distinction of having Africa’s only two demonstration projects to date, indicating higher technical readiness. Mauritania is emerging as a key GH₂ player with six concept-stage projects and four feasibility studies, including several large-scale production facilities.

• Other countries are increasingly engaging with green hydrogen. Kenya, Tunisia, Djibouti and Algeria are all developing early-stage projects, signalling expanding interest beyond the continent’s traditional energy hubs. Kenya, in particular, has four feasibility-stage projects and growing policy momentum. Tunisia and Djibouti have multiple concept-stage projects, while Algeria is one of only two countries expected to bring a new project online by 2025.

• Despite the current imbalance, the projected ramp-up between 2026 and 2030 marks a potential turning point. The report shows that only two new projects are expected to become operational in 2025, in Algeria and Namibia.

• By 2030, however, that number could rise to 13, bringing the total number of countries with functioning green hydrogen infrastructure to at least nine. Egypt, Mauritania and South Africa are expected to lead this next phase, backed by abundant renewable energy resources, relatively advanced regulatory frameworks, port and industrial infrastructure and access to export markets.

• The report attributes much of Africa’s execution gap to a cluster of persistent and interconnected challenges. Chief among them is regulatory fragmentation, which deters investment and complicates project coordination, particularly for cross-border hydrogen trade. Disparities in technical standards, permitting procedures and environmental safeguards introduce delays and drive up costs.

• Institutional and technical capacity also varies widely. While countries such as South Africa and Morocco benefit from mature energy sectors and experienced industrial ecosystems, others lack essential skills and infrastructure. Namibia, for example, anticipates a need for 130,000 skilled workers by 2040 to meet green hydrogen sector demands, despite ongoing efforts to expand training and workforce development.

• Compounding these issues are critical infrastructure shortfalls. Underdeveloped ports, limited transmission grids and insufficient desalination capacity present serious obstacles to scaling up both domestic usage and international export. The report warns that without a coordinated infrastructure strategy, future investments could be delayed, fragmented or inefficiently deployed.

• On the financing front, nearly 80 percent of public funding for green hydrogen projects in Africa originates from Europe, chiefly Germany. However, more than 90 percent of this funding remains undisbursed as of early 2025, and few large-scale projects have reached final investment decision. While promising, the pool of bankable, ready-to-implement projects remains limited.

• Nevertheless, the report outlines several pathways to accelerate progress. Chief among them is the creation of regional green hydrogen development corridors, linking countries rich in renewable energy with industrial centres and ports to enable scale, trade and shared infrastructure. 

• The report also recommends the harmonisation of regulations across regional blocs to facilitate investment and cross-border collaboration. It calls for a continent-wide hydrogen infrastructure plan, greater deployment of blended finance tools, investment in skills development and alignment of national strategies with broader climate goals including the Paris Agreement and Agenda 2063.

Our take

• With the right investments, policies and partnerships, Africa can emerge as a resilient and sustainable hub for green hydrogen innovation and export.

• The report builds on a growing body of evidence affirming Africa’s green hydrogen potential and the gaps that must be bridged; the priority must now shift from planning to coordinated and timely implementation.

• Realising Africa’s green hydrogen ambition will require a deliberate focus on execution through aligned infrastructure development, regulatory coherence and targeted skills investment to sustain long-term competitiveness.