Saudi Arabia and Africa: a new era of energy cooperation

Earlier this week, a major agreement was signed between Egypt and Saudi Arabia in the energy sector. The Egyptian Minister of Petroleum and Mineral Resources, Karim Badawi, and his Saudi energy counterpart, Abdulaziz bin Salman Al Saud, formalised a partnership aimed at developing an executive plan for cooperation on energy efficiency. This agreement marks a new stage in the strengthening of bilateral ties and sustainable development.

This initiative is part of a wider strategic investment programme. Last September, Egyptian Prime Minister Mostafa Madbouly secured a $5 billion investment pledge from the Saudi Public Investment Fund (PIF), representing the first phase of a broader investment strategy between the two countries.

Saudi Arabia, a key player in the global energy market, is pursuing an ambitious expansion policy on the African continent. The aim of this drive is to increase its energy reserves, strengthen its energy diplomacy and assert its influence over other world powers. This strategy is not limited to hydrocarbons, but also encompasses renewable energies and essential mineral resources.

When it comes to clean energy, Saudi Arabia's ACWA Power has established itself as the leading private investor in the sector in Africa. With investments totalling $7 billion, ACWA Power is developing several large-scale projects. In October 2024, the company announced that its Redstone solar power plant in South Africa was close to reaching its full capacity of 100 MW. In addition, its Kom Ombo solar photovoltaic plant in Egypt is now operating at full capacity, supplying 200 MW to the Egyptian energy grid. Another major project underway is the $800 million DAO hybrid renewable power plant in South Africa, which is due to be operational by 2026. This project is in line with the objectives of the Kingdom's Vision 2030.

In addition to renewable energies, Saudi Arabia is focusing on minerals that are essential to the global energy transition. In October, Manara Minerals, a joint venture between Ma'aden and PIF, entered advanced negotiations to acquire a minority stake in First Quantum Minerals' copper and nickel assets in Zambia. The investment, valued at between $1.5 and $2 billion, reflects the Kingdom's commitment to securing a stable supply of critical raw materials for clean energy technologies.

Saudi Arabia's commitment to Africa is not limited to direct investment. In October, the Kingdom announced an ambitious financing plan for the continent's energy infrastructure. This programme provides for a budget of 41 billion dollars, including 1 billion for development, 5 billion for start-ups, 10 billion in financing from the Saudi Export-Import Bank and 25 billion in private investment over the next ten years.

As part of its commitment to sustainable development, the Saudi Ministry of Energy has launched the "Empowering Africa" initiative. This programme, implemented in collaboration with the Ministries of Communications, Information Technology and Health, aims to promote access to clean energy, digital connectivity and e-learning and e-health solutions across the continent.

One of the major components of this initiative is the "Clean Fuel Solutions for Cooking" programme, which aims to provide vulnerable populations with alternatives to traditional biomass fuels. The aim is to improve quality of life and reduce the health risks associated with the use of polluting energy sources. The Saudi Minister of Energy, Abdulaziz bin Salman Al Saud, stressed that access to clean energy was a fundamental right and that continuous efforts were needed to improve the situation in the most disadvantaged communities.

Alongside these initiatives, Saudi Aramco, the national oil company, is stepping up its cooperation with African countries. The aim is to increase investment in energy infrastructure, enhance oil and gas production and promote the transfer of skills between players in the Saudi and African energy sectors. These efforts are part of a broader vision of energy security and the transition to more sustainable models.

With these multiple commitments, Saudi Arabia is asserting its position as a key partner in African energy development. These investments, coupled with an active diplomatic strategy, strengthen its influence and pave the way for enhanced economic and political cooperation with the continent's nations.