AfDB commits US$20m to green hydrogen projects across four African countries

The African Development Bank (AfDB) Group is set to provide reimbursable grants totalling US$20 million to support four green hydrogen and derivatives projects in Egypt, Morocco, Namibia and South Africa.

The financing, subject to approval by the Bank’s Board of Directors, will be provided through the Sustainable Energy Fund for Africa (SEFA) under the Africa Green Hydrogen Programme.

The selected projects include Project Ra in Egypt, which will receive US$3.55 million; Guelmim Green Hydrogen Valley in Morocco, US$5.28 million; the Hyphen project in Namibia, US$5.93 million; and the Saldanha Hydrogen DRI project in South Africa, US$5.24 million.

The projects focus on sustainable marine and aviation fuels in Egypt, Morocco and Namibia, and low-carbon iron production in South Africa.

According to the AfDB, the four projects represent estimated investments of about US$23 billion, alongside 20GW of solar and wind generation capacity, 7GW of electrolyser capacity and 2,950MWh of battery storage capacity.

The Bank said the funding is intended to help move the projects towards investment readiness and attract private-sector participation and foreign direct investment in Africa’s green hydrogen sector.

The Africa Green Hydrogen Programme received 81 proposals from projects across 18 African countries during its 2026 call for proposals.

AfDB Director for Renewable and Energy Efficiency Daniel Schroth said Africa’s renewable energy resources provide an opportunity for the continent to participate in the emerging global green hydrogen and derivatives market.

The programme is also expected to support industrial development, export revenues, technology and skills transfer, job creation and increased access to electricity and desalinated water.