CleanTech is Africa’s leading FDI sector: summary

What we know

• Africa is gradually catching up with the rest of the world in terms of investment in renewable energy and its technologies referred to as CleanTech.
• As of 2010, most investments in CleanTech were concentrated in a few African countries – Egypt, Morocco, South Africa and Kenya – signifying 75% of all renewable energy investments, BloombergNEF reported.
• However, an Ernst & Young Africa Attractiveness report dated November 2023 indicated widespread investments in CleanTech across the continent.
• Investments in renewable energy accounted for 20 percent of total Foreign Direct Investment (FDI). The highest were in Morocco, Egypt and South Africa.
• In Morocco, nine CleanTech projects were recorded amounting to $11.5 billion and 3,337  jobs. Egypt recorded 149 CleanTech projects which generated 61,000 jobs with a capital flow of $107 billion. In South Africa, 12 CleanTech projects were recorded amounting to $1.6 billion in capital flow and 252 jobs.

What they said

The Ernst & Young Africa Attractiveness report read in part, “In 2022, the UAE and France led Africa’s renewables investment push, followed by India and the UK. Together, these four countries provided $77b in 2022. Egypt, Morocco and South Africa were the major recipients, receiving over $110b.” “The UAE is the largest investor in cleantech in the north region, with Egypt receiving $25b in green energy infrastructure. A UAE-led Etihad 7 initiative will raise funds for providing clean energy to 100 million people by 2035,” the report added. “FDI into CleanTech and energy made up one-third of the jobs created in 2022. The global energy transition has led to employment opportunities in solar and wind investments in parts of the continent. IRENA estimates that renewables have created over 1.9 million jobs in Africa. There were 32 extractive projects in 2022 creating more than 21,000 jobs, with the metals sector creating 14,000 jobs alone. Mobility, especially transportation and warehousing, generated significant employment opportunities, with automotive and logistics hubs being set up in Egypt, Morocco, South Africa and Kenya. The sector created more than 27,000 jobs in 2022,” the report indicated.