October, 2021
Africa’s oil and gas industry is on the brink of transformative growth, with an estimated $213 billion investment in 40 projects over the next five years. This investment will be funneled towards infrastructure development, increase in production capacity, and improved energy access across the continent. Countries like Nigeria, Angola, Algeria, and Mozambique are at the forefront of this development with government, private, and public sector support driving project expansion.
“Sub-Saharan Africa dominates with 80% of projects and about 90% of investments”
Many African countries are looking to leverage this investment to address energy poverty and support their national economies. By focusing on developing local infrastructure, countries can reduce their dependency on imports, potentially driving down energy costs and creating a ripple effect of economic growth.
“North Africa is heavily focused on gas – 7 of 8 projects are gas-based.”
Africa continues to depend on oil and gas, with nearly all planned and in-construction projects designed for long-term operation, each with a minimum lifespan of 20 years. However, the growing focus on gas projects—comprising 52.5% of planned energy developments—signals an increased commitment to the gas sector. This shift reflects rising awareness among international investors and African governments of the importance of sustainability within the energy sector.
70% of the projects are to be managed by private companies or consortia, which is favorable for swift and efficient project development and political neutrality, as ca be seen in Eni’s Agogo field which moved from discovery to production within nine months.
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