AFRICA’S ENERGY TRANSFORMATION DRIVES $47 BILLION INVESTMENT SURGE
Continental policy reforms unlock massive capital flows as green momentum accelerates
Africa’s energy sector is experiencing unprecedented transformation, with oil and gas investments reaching $47 billion in 2024 and projections of $43 billion by the end of 2025. This dramatic growth is being fueled by comprehensive policy reforms across four critical areas: investment attractiveness, natural gas monetization, environmental regulations, and local content requirements.
Leading the investment incentive charge, Mauritania launched a new Investment Code in 2024 offering tax exemptions, customs relief, and five-year tax holidays for projects in remote regions. The country’s Agency for the Promotion of Investment introduced a one-stop shop that streamlines company registration to just 48 hours.
Gas monetization is emerging as a continental priority, with the Republic of Congo finalizing its Gas Master Plan to optimize its 284 billion cubic meters of proven reserves. The plan establishes fiscal and licensing frameworks while streamlining exploration, infrastructure, and sales processes. Libya is targeting 4 billion cubic feet per day of gas output within five years while aiming to eliminate routine flaring by 2030 through a $1 billion partnership with Eni.
Environmental regulation is gaining momentum through initiatives like South Africa’s Just Energy Transition Investment Plan, backed by $12.9 billion in international funding and targeting net-zero emissions by 2050. Mauritania adopted Africa’s first Green Hydrogen Code, establishing comprehensive frameworks for land use, environmental safeguards, and project licensing.
Local content requirements are being strengthened across the continent, with Nigeria raising its local content target to 70% in 2025. The Otakikpo oil terminal, operated by indigenous firm Green Energy and commissioned in June 2025, represents the first terminal fully built and managed by local stakeholders, unlocking development of over 40 previously dormant fields.
Source: energycapitalpower.com