In a significant boost to Africa’s energy sector, capital expenditure (capex) on oil and gas projects has reached an impressive $47 billion in 2024, marking a 23% increase compared to last year. This sharp rise highlights the growing interest of energy majors in Africa’s vast untapped resources and underscores the continent’s emergence as a global energy hotspot.
According to the 2025 State of African Energy Report by the African Energy Chamber, much of this investment was driven by traditional powerhouses like Nigeria and Angola. However, emerging players like Senegal and Namibia are rapidly gaining prominence. Senegal celebrated its first offshore oil production this year, while Ghana managed to break a five-year slump by increasing oil production by 10% and gas output by 7%.
Namibia, a rising star in African energy, has captured international attention as a new exploration hub. The country plans to drill 12 offshore wells in 2025 and is poised to start production by 2029. Experts believe Namibia could join the ranks of Africa’s top five oil producers by the 2030s—a remarkable feat for a country that only discovered its significant reserves in 2022.
The report also highlights Africa’s resurgence in exploration. A total of 1,060 wells were drilled in 2024, the highest number since 2015. Africa has become a global leader in drilling high-impact wells, with notable discoveries such as Namibia’s Mopane Complex, holding an estimated 10 billion barrels of oil equivalent, ranking among the largest offshore finds globally.
Another key trend is the increasing emphasis on natural gas. With Africa holding 18 trillion cubic meters of reserves, gas is positioned to play a vital role in the continent’s energy transition, offering both economic growth and emissions reductions. Projects like Senegal’s Greater Tortue Ahmeyim gas field, set to begin production next year, signal the continent’s shift toward becoming a major gas exporter.
The industry has also seen a significant wave of mergers and acquisitions (M&A), driven by divestments from major international oil companies. Middle Eastern and Asian investors, including entities from the UAE, Qatar, and China, have been acquiring assets in countries like Egypt, Mozambique, and Kenya. This shift is creating new opportunities for African indigenous companies, allowing them to harness these assets for growth and innovation.
Policy reforms in countries like Namibia, Senegal, and Angola are credited with attracting substantial foreign investment and fostering a business-friendly environment. Combined with rising global energy demand, Africa’s strategic role in the future of oil and gas is becoming increasingly clear.
