Africa’s Green Industrial Revolution: Leading Low-Carbon Manufacturing Projects

Across Africa, a decisive industrial pivot is underway. Governments and private investors are pairing abundant renewable resources with targeted industrial policy to build low-carbon manufacturing hubs that deliver measurable outputs—not abstract pledges. From North Africa’s green-hydrogen ambitions to West Africa’s localized solar factories and Southern Africa’s push to decarbonize heavy industry, a new generation of projects is reshaping the continent’s industrial landscape.

North Africa is leading at scale, particularly in green hydrogen and green ammonia. Morocco has approved green-hydrogen investments estimated at more than 300 billion dirhams (over US$30 billion), integrating solar and wind power with electrolysis and downstream ammonia production. Major partnerships, including the OCP–Fortescue joint venture, are developing renewable-powered hydrogen clusters designed to supply domestic fertilizer production and export clean fuels to European markets. Egypt is following a similar path through green-hydrogen concessions in the Suez Canal Economic Zone, with plans for multi-gigawatt renewable-powered electrolyzer capacity. Together, these initiatives signal a strategic effort to anchor heavy industry—fertilizers, petrochemicals, and transport fuels—on clean energy.

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In West Africa, the focus is on localized clean-technology manufacturing. Nigeria is advancing plans for a 1-gigawatt solar photovoltaic factory, targeting up to 50 percent local content within three years. This initiative is complemented by mid-scale PV assembly plants in Lagos, Ogun, and Kaduna states that currently supply panels and components for rural electrification, mini-grids, and commercial installations. Nigerian-assembled panels are already reaching export markets in Ghana, Benin, and Togo—an early sign that solar manufacturing is transitioning from pilot projects to regional trade. Senegal and Côte d’Ivoire are also piloting domestic battery-assembly facilities to support the region’s rapidly expanding solar home-system market.

East Africa has built a strong ecosystem around distributed renewable technologies. In Kenya and neighbouring countries, manufacturers and assemblers produce inverters, charge controllers, lithium battery packs, and modular solar home systems. These technologies power micro-manufacturing activities—agro-processing mills, cold storage units, welding workshops, and small factories—across rural and peri-urban areas. Pay-as-you-go solar companies have created integrated supply chains that support thousands of technicians and small manufacturing workshops, forming a regionally connected clean-technology market spanning Kenya, Uganda, Tanzania, and Rwanda.

In Southern Africa, decarbonizing traditional heavy industry has become a strategic priority. South Africa, historically the continent’s largest steel producer, generated approximately 4 million metric tonnes of crude steel in 2024. The sector is now transitioning from coal-based blast furnaces toward electric-arc furnaces powered increasingly by renewable energy and hydrogen-enabled reduction technologies. Mining companies across the region are also deploying large-scale solar and wind plants—some exceeding 100 megawatts—to power mineral beneficiation and refining operations. The objective is to maintain industrial competitiveness while meeting emerging global carbon-border and trade requirements.

Nigeria, in particular, is positioning itself as a central force in Africa’s green industrial revolution. Beyond solar-panel manufacturing, the country is building a growing battery-assembly ecosystem that supplies energy storage for mini-grids, solar home systems, and electric mobility. Locally assembled lithium-ion battery packs now power electric motorcycles and tricycles in major cities, while supporting rural industrial clusters reliant on clean mini-grids.

Industrial zones in Ogun, Kano, and Rivers states are gradually reducing reliance on diesel through solar-hybrid power systems ranging from 10 to 50 megawatts. These systems are lowering emissions and operating costs for manufacturers in textiles, food processing, plastics, and packaging. More than 150 solar mini-grids nationwide now power rural manufacturing hubs, demonstrating how renewable energy can unlock production even in previously energy-constrained areas.

• Nigeria’s gas resources also play a transitional role. The country is exploring blue-hydrogen production for fertilizer and steel manufacturing while promoting compressed and liquefied natural gas as interim replacements for diesel in industrial operations. At the same time, significant lithium deposits in states such as Nasarawa and Ekiti are attracting investment, with policy reforms encouraging local processing rather than raw mineral exports—positioning Nigeria within global battery and electric-vehicle supply chains.

Collectively, these developments reveal a continent-wide strategy built on place-based advantages—sun, wind, minerals, ports—and targeted industrial policy. Morocco demonstrates scale, Nigeria illustrates value-chain localization, East Africa showcases market creation, and Southern Africa highlights decarbonization of legacy industries. Together, they map a practical pathway toward a green industrial revolution in Africa—defined by factory footprints, export-oriented manufacturing, and sustained industrial employment.

For policymakers and investors, the priorities are clear: accelerate renewable-grid integration, deepen local-content development, and align skills and finance to convert clean-energy projects into long-term industrial growth.