The European Green Deal and the African Private Sector

The European Green Deal (EGD) offers the African private sector significant opportunities in green hydrogen production and the supply of critical raw materials, driven by the EU's need for energy security and supply chain diversification. While various funding instruments like InvestEU and the Global Gateway Africa-Europe Investment Package exist, the report warns of a potential 'unequal partnership' where Africa remains a mere resource supplier. It emphasizes the need for African stakeholders to proactively engage in technology transfer and co-creation to avoid lock-in effects and ensure inclusive growth.

• Africa is strategically important for the EU's net-zero targets due to its potential to supply green hydrogen and critical minerals required for renewable energy and electric mobility.
• Green hydrogen is a primary area for collaboration, with the Africa Green Hydrogen Alliance (launched by Kenya, South Africa, Namibia, Egypt, Morocco, and Mauritania) aiming to make the continent a leader in the sector. The Africa-EU Energy Partnership (AEEP) estimates European investment in African green hydrogen could reach 75.6 billion Euros by 2030.
• Several EU financial mechanisms are available to the African private sector, including InvestEU (slated for 372 billion Euros between 2021-27) and the Global Gateway Africa–Europe Investment Package (150 billion Euros), which targets green and digital transitions.
• There is a risk of an 'unequal partnership' where the EGD's focus on critical raw materials and green hydrogen might result in a 'lock-in effect', reducing African countries to the role of mere resource suppliers for the EU.

APA

Demissie, A., & Abimbola, O. (2023). The European Green Deal and the African Private Sector. Africa Policy Research Institute. https://afripoli.org/the-european-green-deal-and-the-african-private-sector

Chicago

Demissie, Alexander, and Olumide Abimbola. The European Green Deal and the African Private Sector. Africa Policy Research Institute, 2023. https://afripoli.org/the-european-green-deal-and-the-african-private-sector.

Wikipedia

{{cite report |last1=Demissie |first1=Alexander |last2=Abimbola |first2=Olumide |title=The European Green Deal and the African Private Sector |publisher=Africa Policy Research Institute |date=23 February 2023 |url=https://afripoli.org/the-european-green-deal-and-the-african-private-sector |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{demissie2023european, author = {Demissie, Alexander and Abimbola, Olumide}, title = {{The European Green Deal and the African Private Sector}}, institution = {Africa Policy Research Institute}, year = {2023}, month = feb, url = {https://afripoli.org/the-european-green-deal-and-the-african-private-sector}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }