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The African Energy Transition Provides Opportunity (By NJ Ayuk)

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A heavy reliance on fossil fuel exports means that many African nations will need to walk a fine line between economic stability and the transition to clean energy

JOHANNESBURG, South Africa, January 13, 2026/APO Group/ —By NJ Ayuk, Executive Chairman, African Energy Chamber (https://EnergyChamber.org).

Let’s really think about this: Today, Africa contributes less than 5% of the world’s energy-related emissions, despite being home to 19% of Earth’s population. By 2060, the continent’s population is expected to reach 28% of the global total. But guess what? In that same timeframe, its share of energy-related emissions is projected to remain a modest 9%.

When you consider these statistics compiled in the recently released African Energy Chamber’s “State of African Energy: 2026 Outlook Report,” it’s evident that Africa’s responsibility for climate change is minimal at most. And yet, the Western advocates who continue the chant of “NET-ZERO! NET-ZERO!” expect their calls for rapidly phasing out fossil fuels to be enacted universally.

This makes ZERO sense.

Low per-capita energy use actually positions Africa to drive global decarbonization efforts. However, this low-carbon development pathway must be one that respects the unique needs of Africans.

It’s just a fact that infrastructure limitations make large-scale decarbonization more challenging on the continent than in other parts of the world. A lack of grid capacity, outdated transmission lines, and a significant energy deficit hinders the integration of large-scale renewable energy projects, such as solar and wind farms. A significant portion of the population lacks access to reliable electricity, and the continent as a whole faces energy deficits, which means decarbonization efforts must occur alongside the fundamental need to expand energy access.

Addressing such infrastructure challenges requires more than just building new assets — it also requires modernizing grids, promoting energy efficiency, improving regulatory environments, and fostering local expertise.  Amid emissions regulations drafted by both the International Maritime Organization and the European Union, Africa has the potential to serve as a major green fuel supplier. But this potential cannot be reached without significant investments in infrastructure upgrades.

As we are all too aware, transitioning to a low-carbon economy requires significant upfront investment. Many African countries struggle to secure the necessary capital due to perceived political and financial risks. Inconsistent policies and slow permitting processes create uncertainty for investors, despite many governments setting ambitious decarbonization targets. A heavy reliance on fossil fuel exports means that many African nations will need to walk a fine line between economic stability and the transition to clean energy.

Despite its dependency on fossil fuels, Africa’s evolving energy profile — that includes hydrogen and critical minerals — has the potential to play an essential role in shaping global climate outcomes.

Growing Green Hydrogen

The 2026 Outlook reports that, by 2035, the continent could produce over 9 million tonnes of low-carbon hydrogen annually. Achieving this volume could be key to the nation’s decarbonization efforts. This is thanks to Africa’s vast solar and wind resources, extensive land availability, and proximity to major export markets. In fact, our report sees the continent becoming an exporter of hydrogen, either by transporting it as liquid via pipeline from Northern Africa to Europe or by using ammonia as a carrier to other international markets.

Currently, major green hydrogen projects in Africa are concentrated in Namibia, South Africa, Mauritania, Egypt, and Morocco. In 2022, these four nations joined two others — Egypt and Kenya — in launching the African Green Hydrogen Alliance (AGHA) that promotes Africa’s leadership in green hydrogen development. Now up to 11 members, the AGHA anticipates that green hydrogen exports from the continent will hit 40 megatons by 2050.

Namibia is a leader in the development of green hydrogen, particularly for export. The USD10billion Hyphen green hydrogen project, being developed by Namibian company Hyphen Hydrogen Energy —   a joint venture between German energy company Enertrag and Nicholas Holdings — expects to produce more than 300,000 tons of green hydrogen annually, aimed at export to Europe.

Another Namibian-German partnership is the HyIron Oshivela green ironworks, which uses a 12 MW electrolyzer, powered by a roughly 25 MW solar array and large battery system, to generate green hydrogen. The hydrogen is then used to remove the oxygen from iron ore to create direct-reduced iron (DRI), a key feedstock for low-carbon steelmaking.

Meanwhile, construction is underway on the Daures Green Hydrogen Village, Africa’s first fully integrated green hydrogen and fertilizer production facility, which will combine renewable energy with sustainable agriculture.

Neighboring South Africa has established a national “Hydrogen Valley,” home to several large-scale projects that are successful largely thanks to public and private investment. The Coega Green Ammonia Project is a USD5.7 billion plant by Hive Hydrogen and Linde, projected to produce up to 1.2 million tons of green ammonia per year. The Prieska Power Reserve Project, located in the Northern Cape, is expected to begin producing green hydrogen and ammonia from solar and wind energy starting in the coming year. In August 2023, Sasol started operations at Sasolburg Green Hydrogen Pilot. This pilot program is capable of producing up to 5 tons of green hydrogen per day. And a consortium known as the HySHiFT Project is looking to produce sustainable aviation fuel (SAF) using green hydrogen in existing facilities.

Based on our research, the 2026 Outlook outlines several strategies that we believe will help unlock Africa’s downstream potential in a rapidly evolving global minerals landscape

In the north, Mauritania is pursuing large-scale “megaprojects” to capitalize on its extensive wind and solar potential. Project Nour (Aman) is one of Africa’s largest green hydrogen projects. Developer CWP Global hopes to produce 1.7 million tonnes of green hydrogen annually. The Mauritanian government has also entered into a separate $34 billion agreement with Conjuncta to develop a 10GW green hydrogen facility.

Further north, Morocco stands out as one of the first African nations to develop a national green hydrogen strategy. It is now positioning itself for export to Europe by allocating substantial land near ports and investing in shared infrastructure to facilitate production and export. Projects are underway in collaboration with entities like TotalEnergies and the European Investment Bank.

Egypt is also actively working to become a regional hub for hydrogen and its derivatives, with a strong focus on the Suez Canal Economic Zone (SCEZ). The SCEZ is already having an impact: The Ain Sokhna Plant, located within the zone, is the first operational green hydrogen production plant in Africa. The Egyptian government has also signed numerous international agreements and secured over USD17.4 billion in investment commitments for several major green hydrogen projects.

Critical Diversification

In addition to its vast green hydrogen potential, Africa is also home to some of the world’s richest deposits of critical minerals such as cobalt, copper, gold, lithium, and platinum group metals (PGMs). As the 2026 Outlook forecasts, this bounty positions the continent as a pivotal player in the global supply chain during energy transition.

We expect demand for critical minerals to quintuple by 2035. This means that mineral-rich African nations stand to gain a significant strategic foothold in the industry, with opportunities all along the value chain from extraction to processing to refining — as long as they can pull in sustained investment in infrastructure, governance, and skills development.

Continued investment is the essential ingredient for the success of this sector. And the good news we’re reporting is that governments in other regions (particularly the United States and China) are clamoring to secure bilateral agreements with African countries to secure mineral access, promote joint ventures, and integrate mineral value chains.

Over the past year, the Democratic Republic of the Congo (DRC) has led the world in cobalt production and ranked second in copper production. As we reported, the DRC was home to seven of the top 10 cobalt-producing mines in 2024. But in February 2025, the government imposed an export ban to curb oversupply and stabilize falling prices. While the ban was lifted in October, it was replaced with a strict quota system to govern mined output and exports until 2027 at the earliest.

The DRC also joins Zimbabwe, Mali, Ghana, and Namibia in leading lithium production. This group of nations produced 124,230 metric tonnes of lithium carbonate equivalent (LCE) in 2024, and output is expected to grow over 150% by 2030. As the 2026 Outlook notes, Africa’s lithium mines are cost-competitive — making them an ideal investment target. So far, several projects have been developed quickly and at relatively low capital costs, particularly in Mali and Zimbabwe.

As for Zimbabwe, its strategic importance in the lithium supply chain continues to grow: In 2024, it was home to two of the world’s top 10 lithium-producing mines, collectively accounting for 7.42% of global lithium output. Zimbabwe also leads beneficiation efforts, having banned lithium ore exports and introduced a 2% royalty on lithium sales, while advancing a USD450 million refinery at the Mapinga industrial park.

Unlocking Our Mineral Potential

Based on our research, the 2026 Outlook outlines several strategies that we believe will help unlock Africa’s downstream potential in a rapidly evolving global minerals landscape.

For one, stable and transparent regulatory frameworks are a must. Securing long-term, consistent investment in refining and processing infrastructure requires predictable legal and fiscal environments. Governments must make regulatory clarity a priority, streamlining permitting processes and ensuring consistent enforcement to attract both domestic and foreign capital.

Promoting regional cooperation and sharing clean-energy infrastructure is another strategy. Governments and regional blocs should focus on investment in shared industrial infrastructure, such as roads, rail, and renewable energy corridors, to support clusters of processing facilities. Regional cooperation — standardizing export policies, environmental standards, and investment incentives across borders — is essential to overcome the fragmented nature of African markets and the landlocked geography of many resource-rich countries.

We also need to ramp up our efforts to build local technical capacity and enable technology transfer. Africa’s refining ambitions are hampered by the scarcity of skilled labor and the limited access to advanced processing technologies. Governments should provide incentives for local hiring, training, and R&D, encouraging partnerships with universities, technical institutes, and international development agencies to accelerate workforce development and knowledge transfer.

At the same time, we must avoid the human rights violations that have plagued other extractive industries in Africa. Our regulations must prioritize human dignity and workplace safety, with directives in place that criminalize child labor, safeguard indigenous people, protect the local physical environment, and promote healthy living and working conditions.

African leaders need to embrace this moment as an opportunity to move up the value chain into processing and refining. The continent can and will unlock significant economic value to help raise nations out of energy poverty – only if governments can foster sustained investment in infrastructure, governance, and skills development.

“The State of African Energy: 2026 Outlook Report” is available for download. Visit https://apo-opa.co/4qWPhGB to request your copy.

Distributed by APO Group on behalf of African Energy Chamber.

Energy

African Energy Chamber (AEC) Endorses Kigali’s Africa CEO Forum as the Continent’s Strategic Hub

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With thousands of executives, investors and policymakers gathering in Rwanda this May, the African Energy Chamber is urging the energy industry to support African-led platforms that tackle energy poverty, mobilize investment and drive the continent’s economic future

KIGALI, Rwanda, February 6, 2026/APO Group/ –The African Energy Chamber (AEC) (https://EnergyChamber.org) has formally endorsed the upcoming Africa CEO Forum in Kigali, positioning the May 2026 gathering as a critical platform for investment, partnership and policy dialogue across the continent. Scheduled for May 14-15 in Rwanda’s capital, the forum is expected to convene approximately 2,800 CEOs, heads of state, ministers and business leaders, reinforcing its status as the largest annual meeting of Africa’s private sector.

 

For the AEC, Kigali represents a strategic venue where African decision-makers, global investors and industry leaders can align around practical solutions to the continent’s most pressing challenge: ending energy poverty while accelerating economic growth. By bringing together stakeholders from more than 90 countries alongside hundreds of government representatives and journalists, the forum creates a rare environment capable of translating dialogue into bankable projects and long-term partnerships.

Africa’s energy future should be defined by Africa – and platforms such as the Africa CEO Forum are strategic opportunities to advance Africa’s energy narrative

This positioning aligns with the Africa CEO Forum’s core mission: highlighting the driving role of the private sector in Africa’s development through high-level networking, deal-making opportunities and strategic analysis from leading institutions. Participants gain access to decision-makers, insight into emerging investment projects and direct engagement with public authorities seeking public-private partnerships.

Energy remains central to these discussions. Despite Africa’s vast natural resources, over 600 million still lack access to reliable electricity and 900 million to clean cooking solutions, constraining industrialization, job creation and social development. The AEC maintains that addressing this crisis will require sustained investment across oil, gas, power and emerging low-carbon technologies – supported by regulatory certainty and African financial leadership.

“Africa’s energy future should be defined by Africa – and platforms such as the Africa CEO Forum are strategic opportunities to advance Africa’s energy narrative. The Forum in Kigali provides the platform where investors, governments and industry can engage directly, mobilize capital at scale and build partnerships that deliver reliable, affordable power to African citizens,” states NJ Ayuk, Executive Chairman of the African Energy Chamber.

Kigali also reflects a broader shift in confidence toward African economic leadership. Rwanda’s rise as a hub for high-level continental dialogue shows how stable governance, investment-friendly policies and regional connectivity can position African cities at the forefront of global business discussions. Ultimately, Africa’s journey toward energy security and prosperity will be defined by partnerships forged on the continent itself.

As momentum builds toward May, the AEC is calling on energy stakeholders across the value chain to engage actively in Kigali – bringing projects, financing solutions and long-term commitment. Participation ensures that Africa’s economic and energy future is not merely discussed abroad, but designed, financed and delivered where it matters most.

Distributed by APO Group on behalf of African Energy Chamber.

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South Africa’s Upstream Petroleum Resources Development Act (UPRD Act): Can Legal Certainty Revive Major Investment After IOCs’ Exit?

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South Africa’s new Upstream Petroleum Resources Development Act offers a fresh regulatory framework, but is it enough to bring supermajors back, or will independent players now dominate the landscape?

CAPE TOWN, South Africa, February 6, 2026/APO Group/ –The high‑profile exit of global energy major TotalEnergies from deepwater Blocks 11B/12B and 5/6/7 – home to the Brulpadda and Luiperd gas discoveries – was a significant setback for South Africa’s plans to use domestic resources to boost energy security and economic growth. TotalEnergies, together with partners QatarEnergy and CNR International, gave up their stakes after determining that the discoveries could not be commercially developed under the existing market conditions and regulatory framework.

 

The exits underscored long‑standing industry frustrations with South Africa’s legal and regulatory environment, widely seen as lacking the clarity and predictability that deepwater investors demand. That backdrop helps explain the government’s passage of the Upstream Petroleum Resources Development Act (UPRD Act) – a standalone legislative framework designed to replace the petroleum provisions embedded in the old Mineral and Petroleum Resources Development Act and provide a bespoke upstream regime.

At its core, the UPRD Act aims to accelerate exploration and production of South Africa’s petroleum resources by providing clear rules and stable rights for companies – key to attracting major investment. It combines exploration and production rights into a single petroleum right, sets out controlled licensing rounds, guarantees third-party access to infrastructure, and establishes the Petroleum Agency of South Africa as a clear regulatory authority. The law also promotes active participation by the State and previously disadvantaged South Africans, mandates local content, allows a share of output to be sold for strategic stock purposes, and separates oil and gas regulation from mining rules to reduce red tape and simplify operations.

Yet the big question remains: will this new legal certainty be enough to lure back the supermajors, or has the landscape shifted toward leaner, more aggressive independent companies seeking opportunities where majors have stepped away?

 It shows how regulatory reform is essential to restoring investor confidence

“Simply put, TotalEnergies’ exit was a blow to South Africa’s energy industry. These discoveries brought to light alternative energy solutions for a country plagued with a decade‑long energy crisis. However, without clear, predictable rules, even world‑class discoveries struggle to progress to commercial development. It shows how regulatory reform is essential to restoring investor confidence,” states NJ Ayuk, Executive Chairman of the African Energy Chamber.

The UPRD Act now provides that framework, but timing is crucial. The regulations needed to put the Act into practice are still being finalized, and until these rules – covering licensing, environmental safeguards and rights administration – are published and tested in early rounds, investor confidence is likely to remain cautious.

For supermajors, investment decisions are increasingly guided by a global strategy that prioritizes projects with clearer returns and lower regulatory risk. With growing pressure to meet climate targets and streamline their portfolios amid the energy transition, deepwater frontier projects in emerging markets are less appealing unless they come with clear, predictable terms.

This creates an opening for independent and smaller players. Companies like Africa Energy Corp. – which increased its stake in Block 11B/12B after the majors’ exit – could view South Africa’s upstream sector as a promising opportunity. With leaner cost structures and a greater tolerance for frontier risk, these players can advance projects that supermajors may avoid, potentially driving local value creation and technology transfer through a different investment model.

Looking ahead to African Energy Week (AEW) 2026 – the continent’s premier energy summit bringing together governments, investors and service companies – the UPRD Act is expected to be a central topic in discussions surrounding South Africa. AEW offers a high‑profile platform to showcase the country’s evolving policy landscape and could set the stage for the first post‑Act licensing round. Industry leaders are likely to debate whether the framework delivers on its promise of stability and what conditions might be needed to attract supermajors back.

Ultimately, South Africa’s upstream rebound will depend on execution: if the regulations foster transparency, competitive terms and confidence in governance, the UPRD Act could be a turning point. If not, the sector may settle into a new normal where ambitious independents, rather than supermajors, drive the next chapter of oil and gas development.

Distributed by APO Group on behalf of African Energy Chamber.

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The International Islamic Trade Finance Corporation (ITFC) Strengthens Partnership with the Republic of Djibouti through US$35 Million Financing Facility

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This facility forms part of the US$600 million, three-year Framework Agreement signed in May 2023 between ITFC and the Republic of Djibouti, reflecting the strong and growing partnership between both parties

JEDDAH, Saudi Arabia, February 5, 2026/APO Group/ –The International Islamic Trade Finance Corporation (ITFC) (https://www.ITFC-IDB.org), a member of the Islamic Development Bank (IsDB) Group, has signed a US$35 million sovereign financing facility with the Republic of Djibouti to support the development of the country’s bunkering services sector and strengthen its position as a strategic regional maritime and trade hub.

The facility was signed at the ITFC Headquarters in Jeddah by Eng. Adeeb Yousuf Al-Aama, Chief Executive Officer of ITFC, and H.E. Ilyas Moussa Dawaleh, Minister of Economy and Finance in charge of Industry of the Republic of Djibouti.

The financing facility is expected to contribute to Djibouti’s economic growth and revenue diversification by reinforcing the competitiveness and attractiveness of the Djibouti Port as a “one-stop port” offering comprehensive vessel-related services. With Red Sea Bunkering (RSB) as the Executing Agency, the facility will support the procurement of refined petroleum products, thus boosting RSB’s bunkering operations, enhancing revenue diversification, and consolidating Djibouti’s role as a key logistics and trading hub in the Horn of Africa and the wider region.

We look forward to deepening this partnership, creating new opportunities, and leveraging collaborative programs to advance key sectors and drive sustainable economic growth

Commenting on the signing, Eng. Adeeb Yousuf Al-Aama, CEO of ITFC, stated:

“This financing reflects ITFC’s continued commitment to supporting Djibouti’s strategic development priorities, particularly in strengthening energy security, port competitiveness, and trade facilitation. We are proud to deepen our partnership with the Republic of Djibouti and contribute to sustainable economic growth and regional integration.”

H.E. Ilyas Moussa Dawaleh, Minister of Economy and Finance in charge of Industry of the Republic of Djibouti, commented: “Today’s signing marks an important milestone in the development of Djibouti’s bunkering services and reflects our strong and valued partnership with ITFC, particularly in the oil and gas sector. This collaboration supports our ambition to position Djibouti as a regional hub for integrated maritime and logistics services. We look forward to deepening this partnership, creating new opportunities, and leveraging collaborative programs to advance key sectors and drive sustainable economic growth.”

This facility forms part of the US$600 million, three-year Framework Agreement signed in May 2023 between ITFC and the Republic of Djibouti, reflecting the strong and growing partnership between both parties.

Since its inception in 2008, ITFC and the Republic of Djibouti have maintained a strong partnership, with a total of US$1.8 billion approved primarily supporting the country’s energy sector and trade development objectives.

Distributed by APO Group on behalf of International Islamic Trade Finance Corporation (ITFC).

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