The African Energy Chamber recently released their 2025 State of African Energy report, highlighting the significant increase in capital expenditure (capex) in the African oil and gas industry. With a total of USD47 billion invested in 2024, a 23% increase from the previous year, the report indicates a positive trend of growth that is expected to continue through the end of the decade.
One of the key takeaways from the report is the emergence of new players in the industry, such as Senegal and Ghana. Senegal celebrated its first offshore oil production, while Ghana saw a significant increase in both oil and gas output in 2024. Additionally, Namibia has positioned itself as an exploration hotspot, with plans to drill over 12 offshore wells and become one of the top-five African producers by the 2030s.
The surge in exploration activities across the continent has led to a record number of wells drilled in Africa this year, with a focus on high-impact wells that have the potential to significantly increase reserves. Notable discoveries, like Namibia’s Mopane complex holding approximately 10 billion barrels of oil equivalent, have put Africa on the map as a global leader in drilling.
The report also highlights the growing emphasis on natural gas resources in Africa, with nearly 18 trillion cubic meters of reserves available on the continent. As global demand for natural gas continues to rise, particularly in Asia, African countries like Senegal are looking to capitalize on their gas fields for economic development and energy security.
Furthermore, the report discusses the increase in divestment by major oil and gas companies, creating opportunities for both foreign and indigenous companies to acquire assets and expand their operations. This trend is seen as a positive development for the industry, as it allows for more competition and innovation in the market.
Overall, the African Energy Chamber’s report points to a promising future for the African oil and gas industry, driven by increased investment, exploration, and a focus on natural gas resources. With the right policies and investments in place, Africa is poised to play a significant role in meeting global energy demands in the coming years.
For more detailed insights from the 2025 State of African Energy report, you can access the full report here.
