African Development Bank to Fund Four Green Hydrogen Projects Across Africa

The African Development Bank (AfDB) plans to provide $20 million in repayable financing to four green hydrogen and derivative projects in Egypt, Morocco, Namibia, and South Africa. The primary objective is to advance these initiatives to the investment-ready stage.

Financing Details and Project Breakdown

The funding will be channeled through the Sustainable Energy Fund for Africa (SEFA), subject to approval by the AfDB’s Board of Directors. Collectively, the four projects represent an estimated $23 billion in total investment.

Here is the detailed breakdown of the allocated financing for each project:

• Egypt – Project Ra
  • Developer: DAI Infrastruktur GmbH
  • Financing: $3.55 million
• Morocco – Guelmim Green Hydrogen Valley
  • Developer: Nareva Holding
  • Financing: $5.28 million
• Namibia – Hyphen Project
  • Developer: Hyphen Hydrogen Energy
  • Financing: $5.93 million
• South Africa – Saldanha Hydrogen DRI
  • Developers: Enertrag and ArcelorMittal South Africa
  • Financing: $5.24 million

Industrial Applications and Infrastructure Scale

These projects target various industrial applications of green hydrogen and its derivatives, including:

• Sustainable fuels for maritime transport and aviation (Egypt, Morocco, Namibia).
• Low-carbon iron production (South Africa).

In terms of infrastructure capacity, the four projects combined will deliver:

• 20 GW of solar and wind energy capacity.
• 7 GW of electrolyzer capacity.
• 2,950 MWh of battery storage.

Strategic Objectives and Economic Impact

Beyond immediate financing, the AfDB’s program aims to:

1. Enhance bankability: Making these projects more attractive to financial institutions.
2. Attract capital: Drawing in additional private investment and foreign direct investment (FDI).
3. Promote renewable energy: Positioning green hydrogen as a key lever for expanding renewable energy adoption and reducing reliance on fossil fuels.

The AfDB estimates that these projects will drive significant local benefits, including:

• Industrial development and increased exports.
• Technology and skills transfer.
• Job creation.
• Improved access to electricity and potable water through desalination, leveraging available renewable energy capacities.

Selection Process

The selection of these four projects followed a call for proposals that ran from April 10 to May 11, 2026. According to the AfDB, the call attracted 81 proposals from projects located in 18 African countries, highlighting the growing interest in green hydrogen across the continent.