Funding tracker: Southern Africa ousts North Africa for once

From the newsletter

April 2025 marked a dramatic shift in Africa’s green hydrogen investment landscape, with Southern Africa—led solely by Mozambique—securing 81.5% of total funding amounting to $33.23 billion out of a total of $40.76 billion. North Africa, which dominated in March, captured just 18.5% in April, with $7.5 billion split between Egypt and Algeria.

• This reversal is a stark contrast to March 2025, when North African countries received 91.2% of green hydrogen commitments as Southern Africa, trailed with only 8.6%.

• While Mozambique pulled in $33.23 billion, Egypt secured a comparatively smaller $7.5 billion, and Algeria just $32 million. 

More details

• In Mozambique, the $33.23 billion is being raised through a bond, in a partnership between UK-based green hydrogen developer Jearrard Energy Resources (JER), Carbon Capital Corporation (CCC), and Green Bond Corporation (GBC).

• The funding will support the development of a 12GW solar-to-hydrogen project in the Inhambane region of Mozambique, which was announced in 2023. The plant is expected to produce 1.5 million tonnes per annum (mtpa) of green hydrogen for export to Asia, Europe, India, and the Pacific Rim.

• CCC will provide initial carbon feasibility studies and leverage its expertise in the carbon market to attract institutional capital to the project, which is considered to be one of the world’s largest solar-hydrogen plants globally.

• In Egypt, the $7.5 billion funding will support the development of a green ammonia facility in Ras Shukeir, led by a consortium of France’s EDF Renewables and Emirati firm Zero Waste. This ambitious project includes a comprehensive infrastructure build-out, such as a seawater desalination unit, a 7 km electricity transmission line, and a 400-meter loading dock, integrating production and logistics capabilities. 

• Upon completion in 2029, the facility, which brings to 17 the total number of announced projects in the country, will produce 1 mtpa of green ammonia for both domestic use and export.

• Meanwhile, Algeria has secured a $32 million grant from the European Union and Germany to create a green hydrogen framework that supports the country’s renewable energy growth. This initiative is aimed at reducing Algeria’s reliance on conventional electricity, allowing more natural gas for export. 

• The funding will be used to develop technical and institutional capacities in the renewable energy sector, create tools for the green hydrogen economy, and establish a national information database on green hydrogen applications. This strategic move is aligned with Algeria's goal of generating 27% of its electricity from renewable sources by 2026.

Our take

• Southern and North Africa's dominance in green hydrogen investments in March and April affirms the two regions' pivotal role in Africa's renewable energy future, with both leveraging their distinct advantages to attract significant global investments.

• Mozambique’s remarkable leap from $540,000 in March to $33.23 billion in April highlights a striking transformation in its green hydrogen sector, underscoring its growing potential to become a leader in renewable energy production and positioning it as a key player on the global stage.

• Algeria’s $32 million EU-backed grant is an important first step toward building a green hydrogen economy, but its reliance on external funding to establish institutional frameworks and technical capacities underlines the challenges it faces.