Africa’s energy sector is expected to see a significant rise in capital expenditure, with annual spending projected to reach $54 billion by 2030, up from the $43 billion expected in 2025. This forecast is outlined in the African Energy Chamber’s (AEC) State of African Energy: 2025 Outlook. The increase in expenditure is expected to drive exploration drilling, with investment surpassing $6 billion in 2024.
With multiple licensing rounds and a rise in mergers and acquisitions (M&A) anticipated, the oil and gas sector is preparing for expansion. African Energy Week (AEW): Invest in African Energies 2025 is expected to play a key role in facilitating these investments. The event, scheduled to take place from 29 September to 3 October 2025 in Cape Town, will serve as a platform for governments, investors and financial institutions to sign agreements and progress energy projects.
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African M&A activity on the rise
M&A transactions in Africa’s energy sector recorded a 73% increase in the first quarter of 2024 compared to 2023, reaching $12.7 billion by July. This surge was driven by international oil companies (IOCs) expanding their assets, with Shell, bp, Chevron, Galp and MedcoEnergi collectively accounting for 83% of the spending, totalling $10.6 billion.
The AEC’s 2025 outlook highlights increased interest from Asian and Middle Eastern national oil companies (NOCs) in African energy assets. Key transactions include the Abu Dhabi National Oil Company’s joint venture with bp in Egypt and its acquisition of a 10% stake in the Mozambique LNG project. Since 2019, regional players and African NOCs have secured 15 billion barrels of oil equivalent in locations such as Namibia, Angola and Mozambique. With approximately $16 billion in assets and over three billion barrels currently available for investment, the sector presents significant opportunities.
Upcoming licensing rounds
Governments across Africa are launching bid rounds to attract investment in oil and gas exploration. Several countries have announced or initiated new licensing rounds:
North Africa: Libya will launch a bid round in early 2025, featuring 22 exploration blocks. Egypt and Algeria have also introduced licensing rounds, offering 12 and six blocks, respectively.
Southern Africa: Angola will launch its 2025 bid round this quarter, featuring nine offshore blocks in the Kwanza and Benguela Basins. Tanzania plans to promote 24 exploration blocks in March 2025. South Africa is also expected to open both offshore and onshore acreage for investment.
West Africa: Mauritania is preparing to launch a 15-block licensing round in 2025. Liberia and Nigeria introduced bid rounds in late 2024, offering 29 offshore blocks and 12 deepwater and shallow-water blocks, respectively.
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AEW 2025’s role in facilitating investment
Since its inception, AEW: Invest in African Energies has played a central role in supporting M&A activity and fostering partnerships. The event has facilitated multiple agreements aimed at advancing oil and gas projects on the continent.
In 2024, five agreements were signed at the event, including:
- A partnership between the national oil companies (NOCs) of Congo and Azerbaijan.
- A trade finance agreement between Afreximbank and Dorman Long Engineering.
- A letter of credit issued by Afreximbank for JE Energy.
The 2023 edition of AEW saw four agreements signed, including:
- A loan agreement between Afreximbank and Alphaden Energy & Oilfield.
- A partnership between AEC and the Black Impact Foundation.
- A hydrogen development deal between Gambia’s Ministry of Petroleum and Energy and H2 Gambia Limited.
In 2022, the event facilitated agreements involving Afreximbank, Sasol, Techni Energies, Namcor, AMCO, Amni International and Moneda Invest.
The momentum of dealmaking is expected to continue in 2025 as companies gather in Cape Town to explore investment opportunities.
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Driving progress in Africa’s energy sector
The AEW: Invest in African Energies event remains a key platform for securing investments and advancing oil and gas projects.
“These deals underscore the event’s role as a premier dealmaking platform while signaling a strong commitment by governments, operators and financiers to advance oil and gas projects in Africa. AEW: Invest in African Energies goes beyond discussing Africa’s investment opportunities to drive actionable progress towards making energy poverty history by 2030,” states Ore Onagbesan, AEW Program Director.
With increased spending, strategic partnerships and new licensing rounds, AEW 2025 is positioned to accelerate investment in Africa’s energy sector.
