Bunkering deals anchor Africa in global maritime decarbonisation

From the newsletter

Egypt has signed two landmark agreements with Japanese partners to advance ammonia and green hydrogen bunkering, cementing Africa’s role in the global shift toward low-carbon shipping. The deals position the continent’s ports not merely as transit points but as emerging hubs supplying clean fuels to international carriers.

• Egypt’s bunkering push highlights Africa’s ability to convert its ports into global nodes for green fuels, leveraging geography at the crossroads of major shipping lanes to gain first-mover advantage.

• The partnerships underline growing international confidence in Africa’s maritime infrastructure with bunkering set to bridge renewable fuel production on the continent and demand from the global shipping sector.

More details

• The agreements were signed on behalf of Egypt by the Suez Canal Economic Zone (SCZONE) during the 12th session of the Egypt–Japan Business Council and the Egypt–Japan Investment Forum in Tokyo, held alongside the 9th Tokyo International Conference on African Development (TICAD9).

• The first deal involves Itochu Corporation of Japan and Egypt’s Orascom Construction to design, develop and operate integrated ammonia bunkering facilities at the SCZone’s ports in Ain Sokhna and East Port Said. The second partnership with the Tokyo Metropolitan Government focuses on cooperation in green hydrogen bunkering, knowledge exchange, stimulating demand and exploring future applications in maritime transport.

• Egypt’s move to anchor ammonia bunkering and advance green hydrogen use marks a significant step in embedding Africa within the global clean shipping economy. The Suez Canal, which carries nearly 15% of global trade and 30% of global container traffic, is moving beyond transit to become a decarbonisation hub, offering vessels not just passage but access to green fuels.

• This reflects a broader continental trend where Africa’s ports, once seen largely as gateways for imports and exports, are repositioning as service centres that meet the evolving needs of international shipping. South Africa is pursuing hydrogen and ammonia bunkering at Saldanha Bay and Boegoebaai, where global demand for its hydrogen could reach 2 million tonnes annually by 2050. According to the World Economic Forum, such a transition could add 6% to GDP and create 2 million jobs, underscoring the economic stakes. 

• Also, South Africa’s Port of Durban, Sub-Saharan Africa’s largest and busiest shipping terminal, is exploring hydrogen-based bunkering for vessels transiting the Indian Ocean. Meanwhile,  Namibia’s Walvis Bay, supported by multi-billion-dollar hydrogen projects, is emerging as a South Atlantic maritime candidate. 

• In East Africa, ports like Mombasa and Djibouti are strategically positioned along vital trade arteries. Mombasa serves as the primary gateway for Kenya and its landlocked neighbors, facilitating the transit of goods for Uganda, Rwanda, and South Sudan. Djibouti, at the crossroads of one of the world’s busiest shipping routes, connects Europe, the Far East, the Horn of Africa, and the Persian Gulf. It functions as a key refueling and transshipment hub and is the principal maritime outlet for imports to and exports from Ethiopia, underscoring its critical role in regional trade and logistic

• Bunkering brings more than energy supply. Facilities can generate skilled jobs, catalyse industrial clusters around ports, attract foreign investment and strengthen Africa’s role in decarbonising global trade networks. Early movers have the opportunity to influence standards, secure long-term offtake agreements and capture value before global competition intensifies. Partnerships with international firms also enable technology transfer in safe fuel handling, storage and delivery, positioning African ports as centres of maritime innovation.

• However, financial and policy considerations remain critical. South Africa’s experience shows that high e-fuel costs, inefficient ports and weak demand signals are major hurdles. Significant investment, regulatory clarity and strong coordination among governments, port authorities and private developers will be essential to attract capital and ensure safe, efficient operations. Besides this, alignment with international shipping decarbonisation targets, such as those of the International Maritime Organization, will further enhance Africa’s credibility and competitiveness.

Our take

• If successfully executed, Africa’s bunkering ambitions could enhance its strategic influence, allowing it to subtly exercise soft power and stake a claim in shaping the maritime economy of tomorrow.

• Africa’s entry into maritime fuels signals ambition beyond raw exports, demonstrating a shift toward downstream uses of green hydrogen and its derivatives to capture greater value.

• Beyond the deals, Africa’s leadership in green shipping will hinge on vision, policy coherence, and the ability to execute partnerships that turn ports into global decarbonisation hubs.