Many African countries rich in natural resources are actively working to attract more exploration and production (E&P) investments. Reforms in licensing rounds, production sharing contracts, and fiscal policies are enhancing investor returns and are projected to drive $41 billion in upstream investment by 2026, according to the African Energy Chamber’s State of African Energy 2026 Outlook.
Countries like Nigeria, Angola, and Namibia are striving to compete with other regions to attract billions of dollars in foreign investments in their energy and minerals sectors. Established oil producers like Nigeria, Libya, and Angola have revamped their licensing and fiscal policies to make them more appealing to investors, while emerging producers are offering incentives to attract investment. The focus across the continent is on expanding natural gas exploration and production to meet the growing demand for gas and LNG both domestically and for export to Europe and Asia.
NJ Ayuk, Executive Chairman of the African Energy Chamber, highlighted the continent’s compelling investment opportunities for those willing to engage in a transparent and competitive E&P landscape. Balancing national priorities with investor confidence is crucial to unlocking Africa’s vast hydrocarbon potential.
Recent reforms in Angola have improved the country’s above-ground risk score, attracting significant upstream investment with fiscal incentives aimed at gas, marginal fields, and incremental production. Angola is also prioritizing standalone gas development and has inaugurated its first plant for processing non-associated natural gas. The country is also looking to accelerate mining approvals to attract more investment, with the recent launch of its first major copper mine.
Nigeria, the largest oil producer in Africa, is auctioning 50 oil and gas blocks to attract $10 billion in new investments and increase production capacity. The country’s updated licensing program and incentives have reignited interest from investors, leading to recent project approvals by major companies like Shell and TotalEnergies.
Senegal and Cote d’Ivoire in West Africa have also attracted international majors, with Cote d’Ivoire expanding offshore development and launching the Baleine oil and gas field. Senegal’s economy is expected to grow at a record rate following the start of oil and gas production, driven by the Sangomar oil field project.
Namibia is emerging as a new exploration hotspot, with the country transitioning towards full producer status under President Netumbo Nandi-Ndaitwah. While Namibia has made significant offshore discoveries, infrastructure challenges could hinder the fast-tracking of these projects, making development more expensive and complex.
Mozambique is cautiously restarting onshore LNG projects following improved political stability in the Cabo Delgado area. TotalEnergies and ExxonMobil have lifted force majeure on major LNG projects in Mozambique, signaling a positive outlook for the country’s energy sector.
Overall, Africa’s resource-rich countries are adopting measures to attract investment, despite challenges such as increasing local content requirements. Supermajors like Shell, TotalEnergies, BP, and Galp are showing interest in developing Africa’s oil and gas potential, highlighting the continent’s growing significance in the global energy market.
