Eastern Africa gears up to become a green hydrogen hub

From the newsletter

The green hydrogen ambitions of the eight nations that make up Eastern Africa received fresh momentum with the signing of a new MoU between the East African Community (EAC) and the German government. Announced at the region’s inaugural Green Hydrogen Symposium in Nairobi, the pact aims to support policy, capacity and innovation.

• Eastern Africa lags behind other regions due to fragmented policies, limited infrastructure and weak investor confidence, slowing its green hydrogen progress.
  

• Yet, vast renewable resources and strategic trade access position Eastern Africa to emerge as a key green hydrogen hub.

More details

• Signed between the EAC’s East African Centre of Excellence for Renewable Energy and Efficiency (EACREEE) and Germany’s international development agency GIZ, the MoU sets the stage for collaboration on promoting green hydrogen and its derivatives across the region.

• Under the agreement, GIZ and EACREEE will jointly complete a baseline study on green hydrogen in the region, assessing current development, identifying regional potential, analysing policy and regulatory landscapes, and exploring trade and investment opportunities.

• They will also develop regional policy briefs to guide the creation of national and cross-border frameworks, and work to build institutional and technical capacity through training, site visits, and educational resource development.

• “Green hydrogen has the potential to transform Eastern Africa’s energy landscape and usher in the region’s green industrialization future. Through this MoU, we aim to foster partnerships, dialogue, and capacity development that could help shape a greener future for the region,” said Bodo Immink, GIZ Country Director.

• “This collaboration expresses our joint aspiration to position Eastern Africa as a frontrunner in green hydrogen innovation,” stated Canon Goddy Muhanguzi Muhumuza, Executive Director of EACREEE.

• While the new MoU between GIZ and EACREEE signals growing momentum, Eastern Africa still lags behind North and Southern Africa in green hydrogen development. Most countries in the region are only beginning to draft strategies or explore enabling policies.

• According to preliminary findings from the baseline study Green Hydrogen in the East African Community—presented by GFA Consulting at the symposium—Kenya stands out as a regional frontrunner, having already developed a national green hydrogen roadmap and with at least three ongoing projects. However, its neighbors remain in the early stages, with limited investor engagement and little infrastructure planning to date.

• In contrast, North African countries such as Egypt and Morocco are significantly ahead. Egypt leads Africa with 17 announced green hydrogen projects, according to our project tracker. Morocco, with 13 projects, boasts a robust National Green Hydrogen Strategy and has allocated one million hectares to green hydrogen development under its "Morocco Offer" to attract international investment.

• Southern Africa is also accelerating. Namibia has attracted multi-billion-dollar investments and hosts Africa’s first green iron plant, the HyIron Oshivela project, as well as the Daures Green Hydrogen project, which recently produced the continent’s first net-zero vegetables. These landmark initiatives underscore why North and Southern Africa continue to dominate green hydrogen funding across the continent—particularly in Q1 2025, according to our funding tracker.

• By contrast, Eastern Africa is still laying the groundwork. While the new MoU signals a turning point, the region must overcome a series of deeper structural hurdles to catch up. According to preliminary findings from the baseline study, Eastern Africa lacks harmonized regulation, cross-border coordination, and infrastructure standards. 

• Investor confidence is another challenge. Most countries in Eastern Africa have yet to implement clear permitting procedures, de-risking mechanisms, or land-use policies. Without bankable frameworks and long-term energy pricing clarity, attracting international developers remains an uphill climb.

• The talent pipeline is equally underdeveloped. Technical capacity is thin, with the region lacking a sufficient pool of engineers, hydrogen specialists, and trained regulators. While the MoU commits to training programs, most countries still need to embed green hydrogen into university curricula, vocational training, and research funding to build a sustainable workforce.

• Even the region’s renewable energy strengths face limitations. Despite world-class geothermal and solar potential, weak grid infrastructure, poor interconnection, and slow progress on power purchase agreements for green projects could delay the deployment of electrolysers and stall industrial off-take.

• Nonetheless, Eastern Africa holds significant untapped advantages. Preliminary findings from the baseline study highlight the region’s vast renewable energy potential, strong government commitment to clean energy, growing domestic demand, and abundant fresh water and land. These assets—combined with a youthful population and rising entrepreneurial momentum—could form the backbone of a future green hydrogen economy.

Our take

• Despite its current lag, Eastern Africa holds unique advantages—including abundant renewables in Kenya and Ethiopia, access to Indian Ocean trade routes, and growing ties with Europe and Asia. With the right policies and early wins, the region could emerge as a competitive exporter.

• If aligned policies, infrastructure and financing mechanisms can be scaled, the region has the potential to become a competitive player in the emerging green hydrogen economy in the long term.

• Eastern Africa is no longer watching from the sidelines. With this new pact, the region has made a serious play to shape its green hydrogen future—though much will depend on what comes next.