Egypt’s Minister of Petroleum and Mineral Resources, Karim Badawi, and Saudi Arabia’s Minister of Energy, Abdulaziz bin Salman Al Saud, have formalized an agreement aimed at developing an executive plan for energy efficiency cooperation. This initiative seeks to enhance bilateral ties, foster sustainable development, and reinforce energy sector partnerships between the two nations. This agreement follows a significant development in September when Egyptian Prime Minister Mostafa Madbouly secured a commitment of $5 billion from Saudi Arabia’s Public Investment Fund (PIF) as part of an extensive investment strategy.
As a dominant force in the global energy sector, Saudi Arabia is actively expanding its presence in Africa’s energy landscape. This expansion not only aims to boost its energy reserves and promote energy diplomacy but also positions the Kingdom as a key competitor among global superpowers. Saudi Arabia’s strategic investments are fostering deeper economic and political connections with African nations.
A significant portion of Saudi Arabia’s investments in Africa have been directed towards clean energy initiatives. With total project costs amounting to $7 billion across the continent, ACWA Power, a leading Saudi developer, has emerged as the largest private-sector investor in African renewable energy. In October 2024, ACWA Power announced that its Redstone solar plant in South Africa was on track to reach full capacity at 100 MW, while the Kom Ombo solar PV plant in Egypt successfully achieved its 200 MW capacity. Additionally, the company is spearheading Project DAO, South Africa’s largest hybrid renewable power plant, with an $800 million investment. Slated for completion by 2026, the project aligns with Saudi Arabia’s broader Vision 2030 sustainability objectives.
Beyond renewable energy, Saudi Arabia is diversifying its investment portfolio by securing critical minerals essential for clean energy technologies. In October, Manara Minerals—a joint venture between Ma’aden and the Public Investment Fund—entered advanced negotiations to acquire a minority stake in First Quantum Minerals’ copper and nickel assets in Zambia. With a valuation estimated between $1.5 billion and $2 billion, this strategic investment underscores Saudi Arabia’s commitment to securing vital resources for the global clean energy transition.
Saudi Arabia’s financial contributions to Africa’s energy infrastructure have also expanded significantly. In October, the Kingdom pledged at least $41 billion to support sub-Saharan African nations, including $1 billion for development projects, $5 billion for startup funding, $10 billion in financing through the Saudi Export-Import Bank, and $25 billion in private sector investments over the next decade.
As part of its broader commitment to sustainable development in Africa, the Saudi Ministry of Energy has launched the “Empowering Africa” initiative. In collaboration with the Ministries of Communications and Information Technology and Health, this program aims to provide clean energy solutions, enhance digital connectivity, and implement e-health and e-learning initiatives. Building on the Clean Fuel Solutions for Cooking Program, the initiative focuses on delivering cleaner cooking technologies to vulnerable populations, reducing dependence on traditional biomass fuels, and improving public health outcomes. Minister Abdulaziz bin Salman Al Saud has emphasized that energy access is a fundamental human right and is leading efforts to expand clean cooking technologies across the continent.
In addition, Saudi Aramco, the Kingdom’s state-owned petroleum company, is deepening its collaborations with African nations to facilitate energy investments, infrastructure development, and knowledge exchange. These partnerships are expected to strengthen oil and gas production capacities while advancing shared energy security and sustainability goals. On the international stage, Saudi Arabia is working closely with the African Energy Chamber to support South Africa’s G20 energy investments and policy coordination. This collaboration is designed to enhance financial mobilization for energy projects and ensure that Africa’s energy priorities are well represented in global discussions. The upcoming African Energy Week: Invest in African Energies conference in Cape Town will serve as a key platform for advancing these efforts. The event will bring together Saudi stakeholders, African governments, and global energy leaders to drive new projects, strengthen partnerships, and accelerate Africa’s energy transition. As Saudi investments continue to expand, their influence on Africa’s energy sector is set to deepen, alongside contributions from other G20 nations.
