By:Energycapitalpower

Special Economic Zones (SEZs) are emerging as powerful catalysts in Africa’s energy and economic transformation. Designed to fast-track infrastructure development, enhance energy access and attract strategic investment, SEZs are positioning African nations as competitive destinations for global investors. Their appeal lies in tailored incentives, streamlined regulations and proximity to key transport corridors, making them ideal hubs for both upstream and downstream energy ventures.

Building Integrated Energy Infrastructure

 In South Africa, the Coega SEZ has become a focal point for green hydrogen development. One of its flagship initiatives – the Hive Hydrogen Green Ammonia Project – recently secured a $20 million investment from the SA-H2 fund, backed by Japanese conglomerate ITOCHU. Developed by Hive Hydrogen South Africa, a joint venture between Hive Energy and BuiltAfrica, the facility will harness 3.6 GW of renewable energy (2.4 GW wind and 1.2 GW solar) to power a 1.2-GW electrolyzer. Once operational, it is expected to produce 1 million tons of green ammonia annually for export to Europe and Asia.

Also within the Coega SEZ, salt producer Cerebos has expanded operations by integrating 2.6 MW of solar power and 4 MWh of battery storage to support its energy-intensive desalination processes. According to the Coega Development Corporation, such investments are part of a broader effort to transition toward 100% renewable energy, demonstrating how SEZs can facilitate industrial decarbonization while reducing operational and logistics costs.

Aligning with National Energy and Development Goals

In the Republic of Congo, the Ignié SEZ exemplifies a new generation of zones designed to promote energy independence and sustainability. Anchored in the country’s Ignié 2021–2046 development strategy, the zone will be powered by a hybrid system combining a 55 MW solar PV plant and a 10 MW biomass plant utilizing household waste. Construction is scheduled to begin this year, led by local firm Tinda Energy in partnership with Sinohydro and Complant. The initiative is set to reduce reliance on imported power, attract foreign direct investment and foster clean-tech industrial growth.

Meanwhile in Senegal, SEZs play a central role in the country’s industrialization agenda. Zones in Diass, Diamniadio and Sandiara offer tax and regulatory incentives to attract energy and manufacturing companies. With first oil and gas recently produced from the respective Sangomar and Greater Tortue Ahmeyim field developments, SEZs are poised to help translate hydrocarbon revenues into local value addition and job creation. A new SEZ is also being developed in Louga as part of the National Industrial Development Strategy, with 50 hectares already allocated and 14 additional industrial hubs planned in future phases.

Positioning SEZs in Africa’s Continental Trade Future