Saudi Arabia is deepening its cooperation with Africa as it seeks to expand its energy reserves and strengthen its global energy influence.
The kingdom has been actively investing in Africa’s energy sector, focusing on renewable energy, critical minerals and infrastructure development, positioning itself as a key player in the continent’s energy transition.
In a significant step last week, Egypt’s Petroleum and Mineral Resources Minister Karim Badawi and Saudi Arabia’s Energy Minister Abdulaziz bin Salman Al Saud signed an agreement to develop an executive plan for energy efficiency cooperation.
The deal aims to enhance bilateral ties and promote sustainable development in the energy sector.
This follows a $5 billion pledge from Saudi Arabia’s Public Investment Fund in September 2024, marking the “first phase” of a larger investment strategy with Egypt.
The Kingdom’s investment in Africa’s energy sector has largely concentrated on clean energy projects.
Saudi Arabia’s leading energy developer, ACWA Power, has emerged as the largest private-sector investor in African renewable energy, with total project costs reaching $7 billion across the continent.
In October 2024, ACWA Power announced that its Redstone solar plant in South Africa had reached its full 100 MW capacity, while its Kom Ombo solar photovoltaic plant in Egypt successfully achieved its full 200 MW capacity.
The company is also spearheading Project DAO, South Africa’s largest hybrid renewable power plant, with an $800 million investment.
Expected to come online by 2026, the project aligns with Saudi Arabia’s broader clean energy ambitions.
Beyond renewables, Saudi Arabia is expanding its investments to secure critical minerals essential for clean energy technologies.
In October, Saudi Arabia’s Manara Minerals, a joint venture between Ma’aden and PIF, entered advanced talks to acquire a minority stake in First Quantum Minerals’ Zambian copper and nickel assets.
The Saudi-backed investments underscore the kingdom’s broader Vision 2030 strategy, which includes securing critical energy resources and advancing energy diplomacy.
Saudi Arabia’s state-owned petroleum giant Saudi Aramco is strengthening partnerships with African nations to support energy infrastructure, enhance oil and gas production capacity, and facilitate knowledge transfer.
The upcoming African Energy Week: Invest in African Energies conference slated for September 29 – October 3 in Cape Town is expected to serve as a key platform for Saudi and African stakeholders to advance new projects, strengthen partnerships and accelerate Africa’s energy transition.
JN/APA