Africa's Capital Expenditure and Energy Sector Poised for Growth

AEW: Invest in African Energies goes beyond discussions on investment opportunities by facilitating tangible progress toward eradicating energy poverty by 2030.

Africa's annual capital expenditure (capex) in the energy sector is set to rise significantly, reaching an estimated $54 billion by 2030, up from the projected $43 billion in 2025, according to the African Energy Chamber’s (AEC) State of African Energy: 2025 Outlook. This increase will drive an uptick in exploration drilling, with spending expected to exceed $6 billion in 2024. With a series of licensing rounds and an anticipated surge in mergers and acquisitions (M&A), Africa is preparing for accelerated growth in its oil and gas industry.

African Energy Week: A Key Dealmaking Platform

The continent’s leading energy conference, African Energy Week (AEW): Invest in African Energies, serves as a crucial platform for governments, energy operators, and financial institutions to finalize deals and advance oil and gas projects. Scheduled to take place from September 29 to October 3, 2025, in Cape Town, AEW is set to build on its legacy as Africa’s premier dealmaking event, fostering investment and sustainable development in the energy sector.

Strong Growth in African M&A Activity

AEW: Invest in African Energies goes beyond discussions on investment opportunities by facilitating tangible progress toward eradicating energy poverty by 2030. African M&A activity surged by 73% in the first quarter of 2024 compared to 2023, reaching a total of $12.7 billion by July. This surge was primarily driven by international oil companies (IOCs) expanding their portfolios. Major industry players—including Shell, bp, Chevron, Galp, and MedcoEnergi—collectively accounted for 83% of total spending ($10.6 billion).

The AEC’s 2025 Outlook highlights increased interest from Asian and Middle Eastern national oil companies (NOCs) in African energy assets. Notable transactions include the Abu Dhabi National Oil Company’s joint venture with bp in Egypt and its 10% acquisition in Mozambique’s LNG project. Additionally, regional African NOCs have acquired 15 billion barrels of oil equivalent in key hotspots like Namibia, Angola, and Mozambique since 2019.

Currently, approximately $16 billion worth of assets, containing over three billion barrels of oil, are available on the market—signaling robust investment opportunities in Africa’s oil and gas sector.

Upcoming Investment Opportunities in Africa

A series of bid rounds across Africa are poised to attract new investment in exploration blocks:

• North Africa: Libya is set to launch a licensing round in early 2025, offering 22 exploration blocks. Egypt and Algeria have recently opened rounds, featuring 12 offshore blocks and six onshore blocks, respectively.
• Southern Africa: Angola will initiate its 2025 Bid Round this quarter, featuring nine offshore blocks in the Kwanza and Benguela Basins. Tanzania will promote 24 exploration blocks in March 2025, while South Africa is set to open both offshore and onshore acreage for bidding.
• West Africa: Mauritania will launch a 15-block bid round in 2025. Liberia and Nigeria commenced bid rounds in late 2024, offering 29 offshore blocks and 12 deepwater/shallow blocks, respectively.

The Impact of AEW 2025 on Dealmaking

Since its inception, AEW: Invest in African Energies has been instrumental in advancing M&A activities and fostering partnerships. The event has facilitated numerous key deals in recent years:

• 2024: Five deals signed, including a Congo-Azerbaijan NOC partnership, a trade finance agreement between Afreximbank and Dorman Long Engineering, and a letter of credit by Afreximbank for JE Energy.
• 2023: Four deals finalized, featuring a $150 million Afreximbank-Alphaden Energy & Oilfield loan agreement, a hydrogen partnership between Gambia’s Ministry of Petroleum and H2 Gambia Limited, and an AEC-Black Impact Foundation partnership.
• 2022: Four significant agreements, with stakeholders including Afreximbank, Sasol, Techni Energies, Namcor, AMCO, Amni International, and Moneda Invest.

This momentum is expected to continue in 2025, as global investors and industry leaders converge in Cape Town to capitalize on Africa’s energy opportunities.

“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 investment opportunities to drive actionable progress towards making energy poverty history by 2030,” states Ore Onagbesan, AEW Program Director.

With Africa’s energy sector poised for substantial growth, AEW 2025 is set to be a cornerstone event for unlocking new investments, securing deals, and shaping the future of African energy.