The African Development Bank (AfDB), through its financing arm the Sustainable Energy Fund for Africa (SEFA), has launched a call for proposals targeting private-sector green hydrogen and derivatives projects across the continent.
The initiative forms part of the bank’s Green Hydrogen Program, which will provide up to $20 million in pre-investment funding to three to five shortlisted projects, aimed at accelerating early-stage projects development and bankability.
Tackling the Financing Gap Slowing Project Rollout
The call for proposals comes at a critical moment for Africa’s green hydrogen sector, with the majority of projects stuck at feasibility or early-stage development stages due to limited access to capital and infrastructure. As a result, the gap between announced capacity and actual deployment keeps widening. Of the 78 announced projects across Africa – valued at approximately $194 billion – the majority remain in early-stage development, underscoring the urgent need to scale project financing.
De-Risking Projects and Advancing Toward Financial Close
AfDB’s Green Hydrogen Program will provide reimbursable grants to support feasibility studies, front-end engineering design and transaction advisory services.
The aim is to de-risk projects, enhance technical readiness and move developments closer to procurement, construction and financial close, thereby addressing one of the most critical bottlenecks in Africa’s hydrogen value chain.
The AfDB initiative is supported by the German government, through a €30 million financing package aimed at crowding in private capital and support project preparation at scale.
Unlocking a High-Potential, Underdeveloped Market
“Green hydrogen represents a real opportunity for Africa, both to decarbonize hard-to-abate industries and to build new value chains, while contributing to socio-economic development,” Daniel Schroth, Director of Renewable Energy and Energy Efficiency at the AfDB said in a statement.
Africa’s green hydrogen potential is projected to reach between 30 million and 60 million metric tons annually by 2050, positioning the continent as a global production hub. The region’s export capacity is also expected to hit 20 million tons annually by 2050. Morocco, alone, is expected to capture up to 4% of global demand by 2030, supported by strong renewable resources and proximity to European markets.
Beyond exports, the sector presents significant socio-economic upside, including the creation of 1.9 to 3.7 million direct jobs and $60 billion to $120 billion contribution to Africa’s GDP. Morocco is estimated to record 300,000 jobs across the green hydrogen value chain by 2030 while Namibia is estimated to create 600,000 employment opportunities by 2040. Meanwhile, South Africa could generate 650,000 jobs from the sector by 2050.
The projected industry benefits present a compelling case for Africa to accelerate investments through innovative mechanisms designed to increase private sector participation across the green hydrogen value chain.
