[ACCI-CAVIE] Africa’s green-hydrogen sector is moving from national strategies to projects that must demonstrate industrial relevance, market access and financing potential. The African Development Bank’s proposed support for four initiatives in Egypt, Morocco, Namibia and South Africa provides an indication of the hydrogen value chains currently being structured across the continent.
The AfDB selects four projects
Subject to Board approval, the African Development Bank Group plans to provide USD 20 million in repayable grants through the African Green Hydrogen Programme. The four selected projects emerged from a call for proposals held from 10 April to 11 May 2026, which received 81 applications from 18 African countries. The Ra project in Egypt, sponsored by DAI Infrastruktur GmbH, is allocated USD 3.55 million; Morocco’s Guelmim Green Hydrogen Valley, sponsored by Nareva Holding, USD 5.28 million; Hyphen Hydrogen Energy’s Namibian project, USD 5.93 million; and the Saldanha Hydrogen DRI project in South Africa, developed by Enertrag SE with ArcelorMittal South Africa, USD 5.24 million.
Three projects-Ra, Guelmim Green Hydrogen Valley and Hyphen are linked to hydrogen-derived fuels and export markets, including applications in aviation and maritime transport. Ra is expected to supply green ammonia from the Suez Canal corridor to European and global markets. Saldanha Hydrogen DRI follows a different industrial route: it aims to use renewable power and green hydrogen to produce low-carbon direct-reduced iron. Together, the four projects represent estimated investment needs of USD 23 billion, requiring approximately 20 GW of solar and wind generation, 7 GW of electrolysis capacity and 2,950 MWh of battery storage.
Export routes and industrial uses
The selected projects show two forms of positioning. Egypt, Morocco and Namibia are developing export-oriented hydrogen value chains, relying on renewable generation, production of hydrogen-derived fuels and access to maritime transport. Egypt’s Suez Canal corridor, Morocco’s proximity to European markets and Namibia’s port access provide distinct logistical advantages for these projects.
South Africa’s Saldanha project is based on an industrial transformation model. It seeks to integrate renewable electricity and green hydrogen into the production of direct-reduced iron, connecting hydrogen development to an existing industrial base and to demand for lower-carbon steel inputs. This approach focuses on industrial use rather than the export of hydrogen molecules alone.
Conditions shaping project viability
The projects’ progress will depend on more than their renewable-energy potential. Water availability, desalination capacity, land access, grid connections, transmission infrastructure, electrolysers, storage, port facilities, certification systems and long-term purchase agreements will all affect their delivery timetable, production cost and financing prospects.
For the African Center for Competitive Intelligence (CAVIE), these conditions are the main points to monitor during project preparation. Changes in investors and project partners, infrastructure commitments, technology choices, environmental approvals, certification requirements, procurement activity and offtake negotiations will show which projects are progressing towards final investment decisions and which supply chains are beginning to form.
Building African participation
African firms can position themselves in the project-development phase, rather than waiting for construction contracts to be announced. Relevant areas include renewable-energy engineering, power transmission and storage, water treatment and desalination, logistics, port services, industrial maintenance, testing and certification, workforce development and financial, legal and technical advisory services.
Public authorities and business-support institutions can strengthen this participation by mapping local capabilities against expected project needs, monitoring procurement and partnership announcements, and supporting compliance with international technical and certification requirements. This can help retain more value locally as hydrogen projects develop.
A market taking shape
The AfDB’s proposed support moves four projects into a preparation phase that will determine their technical, commercial and financial viability. It also shows that African hydrogen development is being organised around export-oriented fuels and industrial applications, with infrastructure and market access as central requirements.
For CAVIE, sustained strategic monitoring of these projects can convert early announcements into actionable intelligence. Tracking sponsors, investors, infrastructure, technologies, buyers and regulation will enable companies and institutions to identify opportunities before commercial relationships and supplier networks become established.
The Editorial Staff