Saudi Arabia is increasing its energy investments in Africa, with a focus on expanding partnerships and securing critical resources. Earlier this week, Egypt’s Minister of Petroleum and Mineral Resources Karim Badawi and Saudi Arabia’s Minister of Energy Abdulaziz bin Salman Al Saud signed an agreement to develop an executive plan for energy efficiency cooperation. This initiative aims to strengthen bilateral relations in the energy sector and support sustainable development.
This agreement follows a significant investment commitment made in September 2024 when Egyptian Prime Minister Mostafa Madbouly secured a $5 billion pledge from Saudi Arabia’s Public Investment Fund (PIF). This investment marks the initial phase of a broader strategy to deepen Saudi Arabia’s economic footprint in Egypt’s energy sector.
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Saudi Arabia’s expanding energy investments in Africa
Saudi Arabia has been increasing its investment in Africa’s energy sector, seeking to expand its reserves and advance energy diplomacy. The country is competing with other global powers to establish a strong presence in Africa’s energy market.
A major part of these investments is directed towards renewable energy projects. Saudi developer ACWA Power has played a key role, leading private-sector investments in African renewable energy with total project costs reaching $7 billion. In October 2024, ACWA Power announced the full capacity achievement of its Redstone solar plant in South Africa at 100 MW and the Kom Ombo solar PV plant in Egypt at 200 MW. Additionally, ACWA Power is spearheading Project DAO, South Africa’s largest hybrid renewable power plant, with an $800 million investment. The plant is expected to be operational by 2026 and aligns with Saudi Arabia’s Vision 2030 strategy.
Investment in critical minerals
Beyond renewable energy, Saudi Arabia is investing in Africa’s critical minerals. In October 2024, Saudi Arabia’s Manara Minerals, a joint venture between Ma’aden and the PIF, entered advanced discussions to acquire a minority stake in First Quantum Minerals’ Zambian copper and nickel assets. The deal, valued between $1.5 billion and $2 billion, aims to secure essential minerals needed for global clean energy technologies.
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Saudi Arabia’s financial commitments to Africa
Saudi Arabia has also increased financial support for Africa’s energy infrastructure. In October 2024, the Kingdom pledged at least $41 billion for sub-Saharan Africa. This includes:
- $1 billion allocated for development initiatives
- $5 billion designated for startup funding
- $10 billion in financing from the Saudi Export-Import Bank
- $25 billion in private sector investments over the next decade
These commitments are designed to strengthen Africa’s energy sector and foster economic growth across the continent.
Empowering Africa initiative
Saudi Arabia’s Ministry of Energy has launched the “Empowering Africa” initiative to support sustainable development. This initiative, in collaboration with the Ministries of Communications and Information Technology and Health, focuses on providing clean energy, connectivity, e-health, and e-learning solutions across Africa.
The initiative also builds on the Clean Fuel Solutions for Cooking Program, which aims to provide cleaner cooking solutions to vulnerable populations. By reducing reliance on traditional biomass fuels, this initiative seeks to improve health outcomes and environmental sustainability. Minister Abdulaziz bin Salman Al Saud has emphasised the importance of energy access as a fundamental human right, advocating for clean cooking technologies across the continent.
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Saudi Aramco’s role in African energy development
State-owned petroleum company Saudi Aramco is strengthening partnerships with African nations to drive energy investments and infrastructure development. These collaborations aim to enhance oil and gas production capacity while facilitating knowledge transfer between Saudi Arabia and African energy stakeholders. The partnerships also align with broader energy security and sustainability objectives.
Saudi Arabia’s role in multilateral energy engagements
Saudi Arabia is working with the African Energy Chamber to support South Africa’s G20 energy investments. This partnership aims to secure financing and improve policy coordination to ensure Africa’s energy priorities are represented in global discussions.
The upcoming African Energy Week: Invest in African Energies 2025 conference in Cape Town will serve as a platform to strengthen these collaborations. The event will bring together Saudi investors, African governments, and global energy leaders to discuss new projects and accelerate Africa’s energy transition.
As Saudi Arabia expands its investments in Africa’s energy sector, its influence on the continent’s energy landscape continues to grow. These engagements are expected to drive economic growth, enhance infrastructure, and contribute to long-term sustainability in Africa’s energy sector.
