Saudi Arabia continues to deepen its engagement with Africa’s energy sector, underscoring its strategic vision to enhance regional partnerships, foster energy diplomacy and secure long-term investments in both renewable and traditional energy industries. In a significant development, Egypt’s Minister of Petroleum and Mineral Resources, Karim Badawi, and Saudi Arabia’s Minister of Energy, Abdulaziz bin Salman Al Saud, recently formalised an agreement to develop an executive plan for energy efficiency cooperation. This agreement marks an important step towards enhancing bilateral cooperation, strengthening energy infrastructure and fostering sustainable development in Africa.
In September, this diplomatic momentum was further reinforced when Egypt’s Prime Minister, Mostafa Madbouly, secured a $5 billion investment commitment from Saudi Arabia’s Public Investment Fund (PIF), representing the first phase of a more expansive investment strategy. These initiatives align with Saudi Arabia’s broader energy ambitions, as the Kingdom continues to compete with global superpowers in expanding its influence and solidifying its role as a dominant energy investor on the African continent.
Saudi investment in Africa’s energy sector has been particularly pronounced in clean energy developments. To date, Saudi Arabia has committed approximately $7 billion to renewable energy projects, with ACWA Power emerging as the leading private-sector investor in African renewable energy infrastructure. In October 2024, ACWA Power’s Redstone solar thermal plant in South Africa achieved its full 100 MW capacity, while the company’s Kom Ombo solar photovoltaic (PV) plant in Egypt successfully reached 200 MW capacity. The company is also spearheading Project DAO, South Africa’s largest hybrid renewable power plant, with an $800 million investment, scheduled for completion in 2026. These initiatives are closely aligned with Saudi Arabia’s Vision 2030 strategy, which seeks to diversify the Kingdom’s energy investments while supporting sustainable development in emerging markets.
Beyond renewable energy, Saudi Arabia is increasingly positioning itself as a key player in Africa’s critical minerals sector. In October, Saudi Arabia’s Manara Minerals, a joint venture between Ma’aden and the Public Investment Fund, entered advanced negotiations to acquire a minority stake in First Quantum Minerals’ Zambian copper and nickel assets. The proposed investment, valued between $1.5 billion and $2 billion, underscores Saudi Arabia’s intent to secure strategic mineral resources essential for global clean energy technologies, including electric vehicle batteries and renewable energy storage systems.
Saudi financial commitments to Africa’s energy infrastructure continue to expand, with the Kingdom pledging at least $41 billion for sub-Saharan African nations. This investment portfolio includes $1 billion dedicated to development initiatives, $5 billion allocated for startups, $10 billion in financing through the Saudi Export-Import Bank and a further $25 billion in private-sector investments projected over the next decade. These financial commitments highlight Saudi Arabia’s broader economic engagement strategy, which seeks to support Africa’s industrialisation efforts while facilitating energy access and economic growth.
The Saudi Ministry of Energy has concurrently launched the “Empowering Africa” initiative, aimed at delivering clean energy, digital connectivity, e-health and e-learning solutions across the continent. This initiative builds upon the existing Clean Fuel Solutions for Cooking Programme, which seeks to provide alternative cooking solutions to vulnerable populations, thereby reducing dependence on traditional biomass fuels and mitigating adverse health outcomes. Minister Abdulaziz bin Salman Al Saud has underscored that energy access constitutes a fundamental human right, reinforcing Saudi Arabia’s commitment to ensuring universal access to sustainable and efficient energy solutions in Africa.
State-owned energy giant Saudi Aramco has also intensified its engagement with African nations, strengthening partnerships to support investment in energy production, infrastructure development and knowledge transfer. These collaborations are expected to enhance oil and gas production capacities while aligning with Africa’s broader energy security objectives and sustainability ambitions.
On the multilateral front, the African Energy Chamber has been working closely with Saudi Arabia to support South Africa’s G20 energy investment and mobilisation efforts. This collaboration is expected to facilitate increased financing, promote policy coordination and ensure that Africa’s energy development priorities remain central to global energy discussions.
The upcoming African Energy Week: Invest in African Energies conference, to be held in Cape Town, will serve as a pivotal platform for advancing these strategic engagements. The event will convene key Saudi stakeholders, African governments and global energy leaders to accelerate investment, forge new partnerships and address Africa’s long-term energy transition challenges. As Saudi Arabia continues to scale up its investment footprint on the continent, alongside other G20 nations, the depth and impact of these engagements on Africa’s energy landscape are set to expand significantly in the coming years.
