Hydrogen investments in Nigeria to hit $2bn in 2040 – Allianz

Hydrogen investments in Nigeria are set to reach USD2bn in 2040 higher than major African economies, according to Allianz

African countries feature a promising combination of resources, coastal access and favorable location, positioning the continent as a potential central hub for the hydrogen-based global economy.

The report states, “Note that hydrogen investments in Nigeria are set to be significantly higher than in most other major African economies and will already reach USD2bn in 2040”.

Africa’s electricity-production capacities will have to increase tenfold by 2050, requiring USD110bn of investment per annum as early as 2030, which then would need to increase to USD190bn in 2050 to meet the goal of limiting the global temperature increase to 1.5°C.

A total global investment opportunity will adds up to USD7trn between 2020-2050

Global warming is the largest threat to humanity and a major driver of poverty and inequality, conflicts and violence. Nowhere is this more true than in Africa, which is at the epicenter of the climate crisis: Although the continent contributed the least to global warming, it is burdened with the highest impacts and losses

On that journey to net zero, two sub-sectors are pivotal. First,  Second, yearly investment needs in the African hydrogen market will have to reach USD3 bn per year in 2030 and USD9 bn in 2050.

The green energy transition is a once-in-a-life time opportunity for African development, a chance to reduce poverty and lift growth potential.

To reap this opportunity, there are three levers to pull: strengthening political stability and the rule of law, reducing project risks by adopting blended finance, and formulating clear green-energy strategies backed by economy-wide transition plans with sector-specific pathways.

An African energy transition would not only mitigate climate change but also reduce poverty by increasing labor productivity, agricultural yields, water availability, food security and human health.

Moreover, while mainly low-skilled jobs in “brown” sectors would be lost, higher-skilled jobs in “green” sectors would be gained, potentially leading to much higher human capital levels. In a nutshell, the energy transition provides tremendous development prospects for African countries.

Allianz operates in multiple countries in Africa through Allianz Africa, Allianz Global Corporate & Specialty, Allianz Trade, and Allianz Egypt.