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”.
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.