A new policy report has cautioned African countries to be careful in signing green energy and industrial deals with Europe, warning that they could repeat the mistakes of the past if not properly managed.
- A new report advises African nations to exercise caution in forming green energy agreements with Europe.
- It highlights Africa’s renewable energy potential, making it an attractive location for green industrial initiatives.
- European interest is driven by cost-effective decarbonization opportunities to meet climate targets.
- The report stresses the need for Africa to prioritize equitable partnerships benefiting its own populations.
The report, released by the Africa-Europe Foundation, says Europe is increasingly looking to Africa as a partner to cut the high costs of decarbonising industries like steel, fertiliser, and shipping fuel. Africa holds about 40% of the world’s untapped renewable energy potential, making it an attractive location for producing green hydrogen, iron, and ammonia.
Europe’s push, Africa’s role
Europe is under pressure to meet climate targets and reduce its dependence on costly fossil fuels. But producing enough renewable energy within Europe is expensive and limited by geography. This is why European industries are exploring partnerships with African countries, where energy can be produced more cheaply.
For Africa, this interest presents an opportunity to attract investment, create jobs, and add value to raw materials before they are exported. The report points out that African countries can use this moment to build stronger industries instead of staying stuck as suppliers of raw energy and minerals.
Countries like Morocco, Namibia, and Egypt are building large-scale renewable projects aimed at powering their own populations. This shows Africa can lead with both domestic action and regional partnerships.
The warning
The report, however, warns that without strong local strategies, Africa could end up as just a “green fuel station” for Europe. This would mirror extractive relationships of the past, where foreign powers controlled industries while African economies gained little.
For context, during COP27, several fossil-fuel deals were announced in African countries even as climate talks pushed for renewables, heightening concerns about who truly benefits.
To avoid this, the report recommends that African governments:
- Link green projects to local needs such as fertiliser production and electricity access.
- Use the African Continental Free Trade Area (AfCFTA) to grow regional markets for green products.
- Push for fair deals that include technology transfer, training, and local value addition.
Why it matters
Many African countries still face widespread energy poverty, with over 600 million people lacking access to electricity. The report argues that green industrial projects, if designed well, could help solve this by creating large-scale demand that makes energy investments more viable.
It also stresses that Europe has a responsibility to ensure these partnerships are fair and not one-sided. Supporting Africa’s green industries would not only help Europe meet its climate goals but also boost Africa’s long-term development.
The report concludes that Africa’s green future must be shaped by Africans themselves, saying: “Africa’s industrial future should not be dictated by external interests alone, but co-developed with partners where interests align.”
