The African Union formally adopted the Continental Green Hydrogen Strategy during its 38th Ordinary Session in Addis Ababa—a binding policy framework that positions Africa as a sovereign clean energy exporter by 2040. Endorsed by 52 member states and spearheaded by AU Commission Chair Moussa Faki Mahamat, the strategy establishes a unified roadmap for green hydrogen development across the continent, with Nigeria, Egypt, Namibia, and Kenya designated as pilot countries for large-scale production. Critically, Nigeria has been named the continent’s primary export hub for green ammonia and hydrogen derivatives targeting European and Asian markets. For global investors, the AU Green Hydrogen Strategy is not aspirational rhetoric—it is an actionable, institutionally backed plan to transform Africa’s abundant renewable resources into high-value industrial exports.
The strategy sets clear, measurable targets: achieve at least 50 gigawatts of electrolyzer capacity by 2035, produce over 10 million tons of green hydrogen annually, and create 5 million jobs across the value chain—from construction and engineering to operations and maintenance. To ensure market access, the AU has established a Pan-African Green Hydrogen Certification System, aligned with EU Renewable Energy Directive (RED III) and Japanese Green Growth standards, guaranteeing that African exports meet stringent criteria for additionality, grid independence, water stewardship, and community benefit sharing.
Nigeria’s selection as lead export hub reflects both natural advantage and policy readiness. The country’s northern states—Katsina, Jigawa, and Sokoto—boast some of the highest solar irradiance levels in West Africa, while existing LNG export terminals at Bonny Island can be retrofitted for green ammonia shipping. Crucially, Nigeria’s recently enacted National Climate Adaptation and Just Transition Act legally mandates that 30% of federal oil and gas revenues be allocated to climate resilience and clean energy infrastructure, providing a domestic financing mechanism that de-risks foreign investment. President Bola Tinubu confirmed on February 9 that his administration will fast-track land allocation, environmental permitting, and foreign exchange access for certified hydrogen projects under the AU framework.
The financial architecture is equally robust. The European Union, Germany, and Japan have jointly committed technical and concessional support through the Africa-EU Green Partnership, while the African Development Bank (AfDB) will manage a dedicated risk mitigation facility to cover political and off-taker risks for private developers. Siemens Energy, Scatec, and ACWA Power have already engaged with Nigerian authorities on integrated solar-hydrogen-ammonia complexes, with feasibility studies underway.
Critically, the AU Green Hydrogen Strategy rejects extractive models of the past. It mandates local content requirements—40% of construction jobs and 25% of engineering roles must go to nationals—and includes a Continental Hydrogen Skills Academy in partnership with universities in Lagos, Cairo, and Windhoek to build technical capacity. Profits, ownership, and decision-making authority remain on the continent. As Chairperson Mahamat stated: “Africa will not trade oil dependency for hydrogen dependency. We will own the value chain—from sun to ship.”
For global markets, this represents a strategic opportunity. With Europe targeting 10 million tons of imported green hydrogen by 2030, Africa’s low-cost renewable potential offers a reliable, ethical alternative to Middle Eastern or Australian suppliers. Nigerian sovereign bonds rose 1.8% on February 9 on expectations of new FDI inflows.
In a world racing to net-zero, the AU Green Hydrogen Strategy proves that the Global South isn’t just adapting to the future—it’s building it, on its own terms.
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