By Favour Pius
The African Development Bank has launched a $20 million funding call to support green hydrogen projects across the continent, in a move aimed at accelerating Africa’s transition to clean energy and positioning it within the fast-growing global hydrogen economy.
The funding initiative, anchored under the Bank’s renewable energy and climate financing framework, is designed to catalyse early-stage project development, attract private capital and de-risk investments in the emerging green hydrogen sector.
Green hydrogen—produced using renewable energy sources such as solar and wind—is increasingly seen as a critical component of Africa’s long-term energy strategy, offering opportunities for industrialisation, export earnings and decarbonisation.
Industry analysts say the latest funding call reflects the Bank’s growing focus on unlocking Africa’s vast clean energy potential, particularly as global demand for low-carbon fuels continues to rise.
The AfDB has in recent years intensified support for energy transition projects through its Sustainable Energy Fund for Africa (SEFA), which provides catalytic financing and technical assistance to improve project viability and attract investors.
Experts note that early-stage financing remains one of the biggest barriers to scaling green hydrogen projects, given the high upfront costs and complex infrastructure requirements.
“Access to project preparation funding is critical. It helps developers move from concept to bankable projects, which is where most investments are unlocked,” an energy analyst said.
The Bank’s intervention is also expected to support feasibility studies, technical design, and enabling infrastructure—key elements required to bring large-scale hydrogen projects to financial close.
Recent global trends show rapid growth in hydrogen investments, with over 1,500 projects announced worldwide as countries race to secure cleaner energy alternatives.
Africa, with its abundant solar and wind resources, is considered well-positioned to become a major producer of green hydrogen, particularly for export to Europe and other markets seeking to reduce carbon emissions.
The AfDB has already backed hydrogen-related initiatives, including funding support for large-scale projects in Southern Africa aimed at producing green ammonia and other clean fuels, demonstrating its commitment to the sector’s development.
Stakeholders say the new $20 million funding window could help build a pipeline of viable projects across multiple countries, deepen private sector participation and strengthen Africa’s competitiveness in the global energy transition.
However, they stress that sustained policy support, regulatory clarity and infrastructure investment will be critical to fully unlocking the sector’s potential.
As the continent seeks to balance energy access with climate commitments, the AfDB’s latest move signals a strategic push to ensure Africa is not left behind in the rapidly evolving clean energy landscape.
