Africa holds immense potential for low-cost renewable hydrogen production, given its abundant solar resources and its significant wind and geothermal potential. This presents a transformative opportunity for the continent to develop a hydrogen economy and drive green industrialization. However, Africa’s diversity means that countries have different starting points in this transition.

This research assesses which African countries are best positioned to establish a national hydrogen economy and advance towards green industrialization. It introduces a comprehensive framework to evaluate countries’ readiness, which incorporates five key dimensions: water (H2O) and renewable energy (RE) potential; national hydrogen commitment; domestic anchor demand; country risk; and export infrastructure. By integrating these factors, the report provides an alternative perspective that moves beyond the limitations of existing studies, offering practical insights for the creation of successful hydrogen markets in Africa.

Through an innovative country clustering analysis, the report identifies three groups of countries with potential for hydrogen market creation: front runners; momentum builders; and strong foundation. By linking the country clustering to concrete policy recommendations, the report supports policymakers, investors, and development partners in prioritizing actions that are tailored to the specific readiness levels and needs of each country group.

Concrete policy recommendations are made for each group and case studies illustrate the outcomes.

With funding by the German Federal Ministry of Education and Research, this report is part of the research program “H2Global meets Africa.”