Africa’s Energy Future: Balancing Growth, Security, and the Role of Fossil Fuels

“We should never apologize for harnessing our fossil fuel resources to drive growth and improve lives. We need to finance coal and unlock its potential for Africa's benefit. Dig, baby, dig!” Ayuk declared.

The global shift toward a low-carbon economy has intensified scrutiny on coal, with industrialized nations citing its environmental and health impacts as major concerns. However, Africa’s energy landscape presents a unique challenge—one that requires a pragmatic and balanced approach. The African Energy Chamber (AEC), the leading voice for Africa’s energy sector, remains firm in its advocacy for coal, oil, and gas as essential components of the continent’s energy mix.

Speaking at the Southern Africa Oil & Gas Conference 2025, organized by the South African Oil & Gas Alliance (SAOGA), NJ Ayuk, Executive Chairman of the AEC, reaffirmed Africa’s commitment to harnessing its fossil fuel resources as a pathway to economic growth and energy security. With the AEC as a Strategic Partner of SAOGA 2025, Ayuk made a compelling case for why Africa must continue to invest in its abundant coal, oil, and gas reserves, rather than prematurely abandoning them for a rapid and unfeasible transition to renewables.

Coal and Fossil Fuels: A Critical Piece in Africa’s Energy Puzzle

“We should never apologize for harnessing our fossil fuel resources to drive growth and improve lives. We need to finance coal and unlock its potential for Africa's benefit. Dig, baby, dig!” Ayuk declared.

While the global narrative pushes for an immediate transition away from coal, Ayuk highlighted that Africa’s energy demands are vastly different from those of developed nations. The reality is that many African countries still struggle with energy poverty, with over 600 million people lacking access to electricity. A blanket phase-out of coal without viable alternatives would leave millions without power, stifling industrialization, economic expansion, and job creation.

“Our continent requires a balanced approach that incorporates all energy sources, including fossil fuels. The recent developments in Libya and Algeria, where gas exports to Europe have reached record levels, demonstrate the importance of Africa’s oil and gas resources in the global market,” Ayuk noted.

Africa’s Expanding Energy Frontiers

As the energy sector evolves, new producers are emerging across Africa, reshaping the continent’s position in the global energy landscape. One of the most significant projects set to transform East Africa is the East African Crude Oil Pipeline (EACOP). Spanning 1,443 kilometers, the pipeline will transport 246,000 barrels of crude oil per day, positioning East Africa as a major energy player.

Similarly, The Grand Tortue Ahmeyim project, a large-scale LNG development located offshore between Mauritania and Senegal, signifies Africa’s growing role in natural gas exports. These projects not only provide economic opportunities but also strengthen Africa’s energy security and industrial development.

Boosting Oil & Gas Investments: The Role of Finance and Policy

Oil and gas discoveries in Africa do not automatically translate to production. The industry requires substantial financial investments, infrastructure development, and policy support to drive production. Ayuk emphasized that Africa must secure financing and favorable policies to ensure its energy projects reach their full potential.

One notable financial development is the U.S. Export-Import Bank’s re-approval of a $4.7 billion loan for the Mozambique LNG project, led by TotalEnergies. Mozambique’s natural gas reserves, estimated at 65 trillion cubic feet, hold the potential to boost the country’s economy while meeting growing energy demands in Asia and beyond.

“The recent funding from the U.S. to Mozambique is a welcome step, and we expect this to pave the way for similar projects across Africa,” Ayuk stated.

Competing on a Global Scale: Africa’s Energy Sector Needs to Step Up

Africa is not just competing with itself, but with emerging energy markets like Guyana and Suriname, which are attracting substantial investments. Ayuk called for greater competitiveness, policy reforms, and increased local content participation in Africa’s energy sector.

“We must create an enabling environment that encourages companies to invest in Africa. A strong focus on local content will generate more opportunities for our citizens, allowing them to participate in and benefit from the energy sector,” Ayuk urged.

Challenging Global Double Standards on Natural Gas

One of the key points Ayuk addressed was the double standards surrounding natural gas. While Europe has classified natural gas as ‘green’, Africa faces resistance when advocating for similar recognition. He stressed that African nations must challenge these discrepancies and demand fair treatment in the global energy discourse.

“It is unacceptable that natural gas is considered green in Europe but not in Africa. We must challenge these double standards and ensure that our energy sector receives the support it deserves,” Ayuk remarked.

A Call to Action: Advocating for Africa’s Energy Future

As the Southern Africa Oil & Gas Conference 2025 wrapped up, Ayuk reiterated the need for a unified front in advocating for Africa’s energy interests.

“We must never apologize for harnessing our fossil fuel resources to drive growth, improve lives, and create a brighter future for Africa. Our energy journey must be dictated by African realities, not foreign narratives. The road to energy security, industrialization, and economic prosperity requires coal, oil, gas, and renewables—working together.”

With Africa poised to play an increasingly vital role in the global energy sector, the AEC and other key stakeholders remain committed to ensuring the continent’s resources are harnessed responsibly, sustainably, and in a way that benefits its people.