The African Development Bank Group has launched a new funding call aimed at accelerating Africa’s entry into the green hydrogen economy, with up to $20 million earmarked for early-stage project support.
The initiative, unveiled under the Bank’s Sustainable Energy Fund for Africa (SEFA), invites private sector developers to submit proposals for green hydrogen and derivative projects across the continent.
Catalysing Bankable Projects
The Green Hydrogen Programme—initially capitalised with support from the German government and approved in late 2025—targets a critical bottleneck in Africa’s clean energy pipeline: the transition from concept to bankability.
Funding will be deployed as reimbursable grants, supporting pre-investment activities such as feasibility studies, engineering design, and transaction advisory services. The goal is to move selected projects closer to Final Investment Decision (FID) and financial close.
Between three and five projects will be selected through a competitive process, subject to due diligence.
Strategic Bet on a Nascent Sector
For the AfDB, green hydrogen represents both an industrial and climate opportunity.
“Green hydrogen represents a real opportunity for Africa, both to decarbonise hard-to-abate industries and to build new value chains,” said Daniel Schroth, Director of Renewable Energy and Energy Efficiency at the Bank. “The programme is designed to support projects through the rigour required in an emerging sector.”
Hydrogen produced using renewable energy is increasingly seen as a pathway to decarbonise sectors such as steel, fertiliser, and heavy transport—industries where electrification remains difficult.
How to Apply
The call for proposals opens on April 10, 2026, with submissions due by May 11, 2026. Applications must be completed via the SEFA portal.
De-Risking Africa’s Energy Transition
SEFA, a multi-donor facility managed by the AfDB, plays a catalytic role in unlocking private capital by addressing early-stage risks in renewable energy projects. Its blended finance approach combines technical assistance with concessional funding to improve project viability.
The hydrogen programme aligns with the Bank’s broader Mission 300 agenda, which aims to expand access to reliable and sustainable energy across Africa.
Africa’s Green Hydrogen Ambition
Africa’s green hydrogen ambitions remain at an early stage, constrained by high upfront costs, infrastructure gaps, and regulatory uncertainty. However, falling renewable energy costs and rising global demand for low-carbon fuels are reshaping the outlook.
By targeting project preparation rather than full-scale financing, the AfDB is positioning itself upstream—where relatively small amounts of capital can unlock significantly larger private investments.
The success of the programme will ultimately depend on whether it can convert technical potential into commercially viable projects in a sector still defining its economics.
How to Apply
The call for proposals opens on April 10, 2026, with submissions due by May 11, 2026. Applications must be completed via the SEFA portal.
