From Desert Sands to African Shores

In a world increasingly defined by the geopolitics of energy and the urgent need for sustainable development, Saudi Arabia is emerging as a pivotal player in Africa’s energy landscape. The Kingdom’s recent flurry of investments, partnerships, and diplomatic initiatives underscores its ambition to not only expand its influence but also to position itself as a key enabler of Africa’s energy transition. From renewable energy projects to critical mineral acquisitions, Saudi Arabia’s multifaceted strategy is reshaping the continent’s energy future while advancing its own Vision 2030 goals.

The latest chapter in Saudi Arabia’s African energy strategy unfolded in late 2023, when Egypt’s Minister of Petroleum and Mineral Resources, Karim Badawi, and Saudi Arabia’s Minister of Energy, Abdulaziz bin Salman Al Saud, inked a landmark agreement. The pact outlines an executive plan for energy efficiency cooperation, marking a significant step in bolstering bilateral ties in the energy sector. This agreement is not merely a technical collaboration; it is a strategic alignment between two regional powerhouses, aimed at fostering sustainable development and enhancing energy security.

This development follows another pivotal moment in September 2023, when Egyptian Prime Minister Mostafa Madbouly secured a $5 billion pledge from Saudi Arabia’s Public Investment Fund (PIF). Described as the “first phase” of a broader investment strategy, this commitment underscores Saudi Arabia’s intent to deepen its economic and political footprint in Egypt, a nation that serves as a gateway to both Africa and the Mediterranean.

As a global energy titan, Saudi Arabia’s foray into Africa’s energy sector is driven by a confluence of strategic imperatives. The Kingdom is not only seeking to diversify its energy portfolio but also to secure its position in a rapidly evolving global energy landscape. Africa, with its vast untapped energy resources and burgeoning demand for sustainable solutions, presents a fertile ground for Saudi investments. By expanding its energy reserves and advancing energy diplomacy, Saudi Arabia is positioning itself to compete with other global superpowers, including China, the United States, and the European Union, all of whom are vying for influence in Africa.

To date, Saudi Arabia’s investments in Africa have been heavily skewed toward clean energy advancements, reflecting the Kingdom’s commitment to sustainability and its Vision 2030 objectives. ACWA Power, a leading Saudi developer, has emerged as the largest private-sector investor in African renewable energy, with total project costs across the continent reaching $7 billion.

In October 2023, ACWA Power announced that its Redstone solar plant in South Africa was on track to achieve its full 100 MW capacity, while its Kom Ombo solar PV plant in Egypt had successfully reached its full capacity of 200 MW. These milestones are emblematic of Saudi Arabia’s growing influence in Africa’s renewable energy sector.

One of ACWA Power’s most ambitious projects is Project DAO, South Africa’s largest hybrid renewable power plant. With an $800 million investment, the project is expected to come online by 2026 and is poised to play a transformative role in South Africa’s energy landscape. By integrating multiple renewable energy sources, Project DAO aligns with Saudi Arabia’s broader Vision 2030 goals, which emphasize sustainability, innovation, and economic diversification. This initiative also underscores the Kingdom’s ability to execute large-scale, complex projects that deliver both economic and environmental benefits.

While renewable energy remains a cornerstone of Saudi Arabia’s African strategy, the Kingdom is also diversifying its investments to secure critical minerals essential for clean energy technologies. In October 2023, Saudi Arabia’s Manara Minerals, a joint venture between Ma’aden and the Public Investment Fund (PIF), entered advanced talks to acquire a minority stake in First Quantum Minerals’ Zambian copper and nickel assets. This potential investment, valued between $1.5 billion and $2 billion, highlights Saudi Arabia’s strategic focus on securing the raw materials necessary for the global clean energy transition.

Copper and nickel are indispensable components of batteries, electric vehicles, and renewable energy infrastructure. By investing in these critical minerals, Saudi Arabia is not only safeguarding its own energy future but also positioning itself as a key player in the global supply chain for clean energy technologies. This move also reflects the Kingdom’s broader strategy of leveraging its financial resources to secure long-term strategic assets.

In a bold demonstration of its commitment to Africa, Saudi Arabia announced a major funding initiative in October 2023, pledging at least $41 billion for sub-Saharan African nations. This comprehensive package includes $1 billion for development projects, $5 billion for startups, $10 billion in financing from the Saudi Export-Import Bank, and $25 billion in private sector investments over the next decade. This initiative is not merely a financial commitment; it is a strategic investment in Africa’s future, aimed at fostering economic growth, enhancing energy infrastructure, and promoting sustainable development.

The “Empowering Africa” initiative, spearheaded by the Saudi Ministry of Energy, is a cornerstone of this broader commitment. In collaboration with the Ministries of Communications and Information Technology and Health, the initiative seeks to deliver clean energy, connectivity, e-health, and e-learning solutions across the continent. By addressing critical gaps in energy access and digital infrastructure, the initiative aims to improve livelihoods and drive long-term growth in Africa.

Building on the success of the Clean Fuel Solutions for Cooking Program, the “Empowering Africa” initiative places a strong emphasis on providing cleaner cooking solutions to vulnerable populations. Traditional biomass fuels, such as wood and charcoal, are widely used in Africa but have severe health and environmental consequences. By promoting cleaner cooking technologies, Saudi Arabia aims to reduce reliance on these harmful fuels, improve health outcomes, and mitigate environmental degradation.

Minister Abdulaziz bin Salman Al Saud has been a vocal advocate for clean cooking solutions, describing energy access as a fundamental human right. His leadership in this area reflects Saudi Arabia’s broader commitment to addressing energy poverty and promoting sustainable development across the continent.

Saudi Aramco, the Kingdom’s state-owned petroleum giant, is also playing a pivotal role in strengthening Saudi-Africa energy partnerships. Through strategic collaborations with African nations, Aramco is supporting energy investments and mobilization, driving infrastructure development, and enhancing oil and gas production capacity. These partnerships are not only expected to boost Africa’s energy sector but also to facilitate knowledge transfer and capacity building, ensuring that African nations are well-equipped to navigate the complexities of the global energy landscape.

In the multilateral arena, Saudi Arabia is working closely with the African Energy Chamber to support South Africa’s G20 energy investments and mobilization. This partnership is set to facilitate greater financing and policy coordination, ensuring that Africa’s energy priorities are well-represented in global energy discussions. By aligning its efforts with the G20, Saudi Arabia is reinforcing its commitment to fostering international cooperation and advancing sustainable energy solutions.

Saudi Arabia’s strategic energy diplomacy in Africa represents a bold and visionary approach to global energy challenges. By investing in renewable energy, securing critical minerals, and promoting sustainable development, the Kingdom is not only advancing its own interests but also contributing to a more sustainable and equitable energy future for Africa. As Saudi Arabia continues to deepen its engagement with the continent, its efforts are likely to have far-reaching implications, shaping the trajectory of Africa’s energy transition and reinforcing the Kingdom’s position as a global energy leader.

In a world where energy is increasingly intertwined with geopolitics, economics, and sustainability, Saudi Arabia’s African strategy stands as a testament to the power of collaboration, innovation, and long-term vision. As the Kingdom and Africa embark on this transformative journey together, the possibilities for mutual growth and prosperity are boundless.

By Horn Review Editorial