By Rody N. Kapinga
Hydrogen’s global leap faces investment, regulation, and scaling challenges. This was the theme of Day 3’s panel session at the International Commodity Summit 2025 in Cape Town, where policymakers, industry leaders, and local authorities debated whether hydrogen can truly become the missing link in the energy transition.
The potential is immense: projections suggest hydrogen could meet 15–20% of global energy demand by 2050, unlocking a market worth trillion. Yet the data reveals a sobering reality the gap between production potential and the infrastructure required to scale safely and broadly.
The urgency is clear. Hard‑to‑abate sectors such as heavy industry, shipping, and aviation account for over 30% of global CO₂ emissions. Green hydrogen, produced via electrolysis powered by renewable energy, offers a zero‑emission solution.
But the hurdles are daunting. Analysts warn that trillions of dollars in investment are needed across the value chain from renewable generation and electrolyzers to pipelines, shipping terminals, and storage facilities. Current annual investment levels remain far below the pace required to meet 2050 targets.
Africa’s role in this transition is pivotal yet constrained. Despite abundant solar and wind resources, many countries are “lagging behind” in establishing legal frameworks for hydrogen production.
This regulatory vacuum deters foreign direct investment and risks sidelining Africa’s potential. Prisca Mayumbelo, Head of Business Development for the City of Windhoek in Namibia, emphasized: “We are still lagging behind as African countries in terms of having a legal framework… Government really plays a very critical role. We cannot be spectators anymore. We do have the natural resources, and when investors come to Africa, we need equitable partnerships.”
Her remarks underscored the importance of local authorities in implementation, from land allocation to community engagement. Without clear national policies, municipalities face uncertainty in advancing projects.
The implication for the global market is stark: delays in Africa’s hydrogen rollout could slow worldwide decarbonization, shifting momentum to regions with established frameworks.
Industry observers suggests that responsibility lies both with governments to provide stable, attractive guidelines and with investors to ensure equitable terms that benefit local economies. The outlook is one of high potential but conditional risk.
If Africa bridges its policy gap quickly, it could emerge as a global powerhouse in green hydrogen. Conversely, continued inertia will divert capital elsewhere, undermining both Africa’s development and global climate goals.
The clock is ticking. Day 3’s panel made it clear: policymakers must turn hydrogen’s promise into tangible progress, or risk watching the energy transition stall at the very moment it needs acceleration.
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