Saudi Arabia is accelerating its strategic expansion into Africa’s energy sector, cementing itself as a key player in both renewable and traditional energy investments across the continent. With billions of dollars flowing into energy infrastructure, critical minerals, and industrial projects, the Kingdom is reshaping Africa’s energy landscape while simultaneously advancing its own global ambitions.
In a significant step toward deepening regional partnerships, Saudi Arabia and Egypt recently formalised an executive plan for energy efficiency cooperation. The agreement, signed by Egypt’s Minister of Petroleum and Mineral Resources, Karim Badawi, and Saudi Energy Minister Abdulaziz bin Salman Al Saud, signals a broader push to strengthen energy diplomacy, enhance infrastructure, and support sustainable development across Africa. This move follows Egypt’s securing of a $5 billion investment commitment from Saudi Arabia’s Public Investment Fund (PIF) in September, marking the first phase of an expansive, long-term investment strategy.
Renewable Energy Push
The Kingdom’s investments in Africa’s clean energy sector have gained significant momentum, positioning Saudi companies, particularly ACWA Power, as leading private-sector investors in the region’s renewable energy transition. To date, Saudi Arabia has committed approximately $7 billion to renewable energy projects across the continent.
In October 2024, ACWA Power’s Redstone Solar Thermal Plant in South Africa achieved its full 100 MW capacity, a milestone in the country’s renewable energy ambitions. At the same time, the company’s Kom Ombo Solar Photovoltaic (PV) Plant in Egypt successfully reached a 200 MW capacity. Looking ahead, ACWA Power is spearheading Project DAO, which, with an $800 million investment, will become South Africa’s largest hybrid renewable power plant upon completion in 2026.
These projects align closely with Saudi Arabia’s Vision 2030 strategy, which aims to diversify the Kingdom’s energy investments beyond fossil fuels while supporting sustainable development in emerging markets. By leveraging its expertise in large-scale renewable energy, Saudi Arabia is positioning itself as a critical partner in Africa’s green energy transition, providing much-needed capital and infrastructure to expand clean power generation.
Strategic Play in Critical Minerals Sector
Saudi Arabia is also making decisive moves in Africa’s critical minerals industry, recognising the sector’s importance to the future of global clean energy technologies. In October, Manara Minerals, a joint venture between Saudi mining giant 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 ambition to secure strategic mineral resources essential for electric vehicle (EV) batteries and renewable energy storage systems.
By gaining access to Africa’s vast reserves of copper, lithium, and nickel, Saudi Arabia is positioning itself to become a dominant supplier of raw materials needed for the global energy transition. This not only strengthens the Kingdom’s economic influence but also ensures long-term resource security as demand for these critical minerals surges worldwide.
Expanding Financial Commitments
Beyond individual projects, Saudi Arabia has pledged at least $41 billion in energy and economic investments across sub-Saharan Africa. This massive financial commitment is spread across multiple sectors, including:
- $1 billion allocated for development initiatives
- $5 billion directed toward supporting African startups
- $10 billion in financing through the Saudi Export-Import Bank to boost trade and infrastructure development
- $25 billion projected in private-sector energy investments over the next decade
These investments form a key pillar of Saudi Arabia’s broader economic engagement strategy, aimed at accelerating Africa’s industrialisation, expanding energy access, and fostering economic growth.
Empowering Africa
As part of its commitment to Africa’s energy future, the Saudi Ministry of Energy has launched the “Empowering Africa” initiative, a program designed to deliver clean energy, digital connectivity, e-health, and e-learning solutions across the continent. This initiative builds upon the Clean Fuel Solutions for Cooking Programme, which seeks to provide alternative cooking technologies to reduce dependence on biomass fuels, a major contributor to deforestation and indoor air pollution in African households.
Energy Minister Abdulaziz bin Salman Al Saud has reinforced Saudi Arabia’s stance that energy access is a fundamental human right, emphasising the Kingdom’s role in ensuring universal access to sustainable and efficient energy solutions across Africa.
Strengthening Ties
State-owned energy giant Saudi Aramco is also ramping up its presence in Africa, forging new partnerships to support investments in oil and gas production, energy infrastructure, and technology transfer. While Saudi Arabia is aggressively pursuing renewable energy, it remains deeply invested in Africa’s traditional energy markets, providing capital and expertise to help stabilise and expand the continent’s oil and gas output.
These collaborations align with Africa’s broader energy security objectives, ensuring a balanced approach to meeting rising energy demand while transitioning toward cleaner alternatives.
Growing Influence
On the multilateral front, Saudi Arabia is increasingly shaping global discussions on Africa’s energy future. The African Energy Chamber has been working closely with Saudi leadership to support South Africa’s G20 energy investment and mobilisation efforts. These engagements are expected to drive increased financing, strengthen policy coordination, and ensure that Africa’s energy development priorities remain central to global energy strategies.
With Saudi Arabia’s influence growing in Africa’s energy sector, the Kingdom is positioning itself as a strategic partner in the continent’s energy transformation. As global powers vie for influence in Africa’s resource-rich landscape, Saudi Arabia’s multi-billion-dollar investments signal its intent to play a defining role in shaping the continent’s energy journey.