Gulf Cooperation Council (GCC) nations – notably, the UAE, Saudi Arabia and Qatar – are transitioning from fossil fuel exporters to strategic investors in Africa’s clean energy future. As China scales back its role as Africa’s leading financier, Gulf sovereign wealth funds and private investors are accelerating their presence across the continent.
From 2012 to 2022, GCC countries invested more than $100 billion in Africa, led by the UAE with $59.4 billion, followed by Saudi Arabia at $25.6 billion and Qatar with $7.2 billion, according to Afreximbank’s December 2024 report. These investments are reshaping Africa’s energy partnerships, blending economic ambition with geopolitical influence.
Oil and Gas: Expanding Regional Influence and Security
Gulf investments in Africa’s oil and gas sector underscore a strategic focus on energy security, export routes and industrial integration. The UAE has committed to co-financing the $25 billion Morocco-Nigeria offshore gas pipeline, a 6,800 km megaproject designed to transport 30-40 billion m³ of natural gas annually across 15 West African nations and onward to Europe. Backed by the UAE alongside the Islamic Development Bank and OPEC Fund, the project aims to enhance regional energy security and economic integration. Construction is set to begin in phases starting in 2025, with initial deliveries expected by 2029.
Meanwhile, QatarEnergy has deepened its upstream footprint in Namibia’s Orange Basin, acquiring a 27.5% stake in Block 2813B in late 2024 to complement its existing 35.25% interest in neighboring Block 2913B. The company, alongside Shell and NAMCOR, is advancing post-well analyses to optimize development strategies and identify additional prospects. These moves reflect Qatar’s broader strategy to strengthen its position in promising frontier basins while supporting Namibia’s ambitions to become a regional hydrocarbons hub.
Clean Energy: Driving Africa’s Energy Transition
In parallel, GCC nations are positioning themselves at the forefront of Africa’s clean energy build-out – supporting the continent’s energy transition while securing long-term export opportunities in hydrogen, ammonia and green power.
The UAE’s Masdar, together with Egypt’s Infinity Power and Germany’s Conjuncta, is advancing a 10 GW green hydrogen project northeast of Nouakchott, Mauritania. Following the completion of early feasibility studies, Phase 2 infrastructure planning is under way, targeting 400 MW of electrolyzer capacity by 2028. Once fully operational, it will produce up to 8 million tons per year of green hydrogen and its derivatives, including ammonia, for export markets. The project will create 3,000 construction jobs and 1,000 permanent positions, supporting Mauritania’s clean energy ambitions.
In Tunisia, UAE-based AMEA Power began construction of its 120 MW Kairouan Solar Park in May 2024. Backed by the IFC and African Development Bank, the $86 million project is expected to be commissioned in late 2025, generating 222 GWh annually – enough to power 43,000 homes and cut 117,000 tons of CO₂ emissions. The project illustrates growing Gulf investor interest in North Africa’s renewables sector and supports Tunisia’s efforts to diversify its energy mix and reduce reliance on imported fuels.
In Egypt, Saudi Arabia’s ACWA Power is spearheading a $2.3 billion 2 GW wind farm, set to become the country’s largest on completion in 2026. The wind farm will supply clean power under a 25-year PPA and cut CO₂ emissions by 3.5 million tons annually, helping Egypt meet its 2030 target of 42% renewable energy.
Whether through hydrocarbons or renewables, GCC investors are becoming central to Africa’s energy future. Their combined oil and gas and clean energy engagements not only address Africa’s immediate energy needs, but also position Gulf nations as long-term partners in the continent’s industrial and economic development.
Source: Energy Capital & Power
