Officials at the Africa Energy Forum
HABARI DAILY I Kampala, Uganda I The African Energy Chamber (AEC) has launched specialized advisory Services to Support Energy Investments on the continent.
According the International Energy Agency (IEA) Africa’s renewable energy investment soared from $2.6 billion in 2021 to an estimated $40 billion in 2024, yet it accounts for less than 3% of global clean energy funding, a stark contrast to the continent’s vast renewable potential.
A recent press statement from the African Energy Chamber, a body representing the voice of the African energy sector, the specialized Advisory Services will support the development of the African energy sector.
“Aligned with the organizations broader mandate to improve the landscape of the African energy sector and support a results-focused business environment for companies operating across the market, these services are tailored to the oil, gas and petrochemical sectors, supporting clients through the full project lifecycle,” reads part of the statement.
It adds that building on the AEC’s extensive African and international footprint, the advisory services will also support business transactions, foreign investments and merger and acquisitions in Africa.
“This effort is geared towards alleviating energy poverty by unlocking greater value from the continent’s resources,” further says the statement, adding that AEC capabilities in this regard include comprehensive project planning and execution support; investment-grade feasibility studies and financial modeling; and stakeholder alignment and communication strategies.
The AEC also offers services related to the application of industry-leading practices to optimize returns and drive growth as well as advisory on regulatory compliance, market entry and risk mitigation.
These services enable clients to invest strategically across key markets in Africa, but maximize their returns on investment, boosting profitability and continental expansion.
“These services come as Africa’s energy industry is on the precipice of witnessing significant growth, as international operators expand their portfolios, regional players increase their investments and petroleum demand continues to grow across the continent,” say officials at AEC
The AEC’s State of African Energy 2025 Outlook Report shows that investment remains strong in 2025, with total capital expenditure estimated at $43 billion.
“By 2030, investment is expected to increase to $54 billion, highlighting the continent’s attractiveness as an energy investment destination. In tandem, African M&A activity has shown robust growth, rising 73% in Q1, 2024 compared to 2023 levels,” says the Johannesburg based body, attributing the trend to growing interest by Asian and Middle Eastern national oil companies (NOC) in Africa as well as regional expansion by African NOCs.
NJ Ayuk, the Executive Chairman of the AEC pointed out that mergers and acquisitions activity is expected to continue to grow as companies seek new opportunities in both established and frontier markets. In response, African countries are offering greater investment opportunities.
“In North Africa, these include upcoming bid rounds in Libya (22 blocks), Egypt (12 blocks) and Algeria (6 blocks). In East and Southern Africa, these include Angola (10 blocks) and Tanzania (24 blocks), while South Africa is expected to open offshore and onshore acreage,” he said, adding that Mauritania is also preparing to launch a 15-block licensing round while Nigeria and Liberia have both launched bid rounds in 2024.
“Given the complexity of oil and gas transactions, understanding these changes as well as the respective regulatory climates of African countries become imperative. Through our range of investment and advisory services, we partner with companies seeking to invest and sign deals in Africa,” said Ayuk.
Beyond Advisory Services, the AEC also offers specialized expertise in identifying and executing high-value investment opportunities across Africa’s petroleum value chain.
Leveraging its international footprint, expertise in strategic markets across Africa and strong public and private sector ties, the organization is committed to supporting mutually-beneficial investments in Africa.
$110b Investment
IEA further says that achieving Africa’s energy- and climate-related goals by 2030 will require annual investments of over $200b through the end of this decade.
“This will be vital to meet the growing energy needs of a continent where the median age of the population is 20 years and average GDP per capita is just over one-fourth of the global average,” it says.
Says IEA: “Our tracking of energy spending suggests that around $110b is set to be invested in energy across Africa in 2024, of which nearly $70b will go to fossil fuel supply and power, with the remainder going to a range of clean energy technologies.”
Spending trends vary widely across Africa, but neither the total amount nor the proportion spent on clean energy are enough to put the continent on track to reach its sustainable development goals.
“As they stand, energy investments are equivalent to only 1.2% of the region’s GDP and clean energy investments, while rising, account for just 2% of the global total,” concludes IEA.
