Africa’s energy future hinges on stronger investment policies, stable fiscal regimes, and predictable contracts, says NJ Ayuk, Executive Chairman of the African Energy Chamber (AEC).
In an opinion piece, Ayuk points to Algeria’s USD5.4 billion partnership with Saudi Arabia’s Midad Energy and ongoing talks with ExxonMobil and Chevron as examples of how clear, investor-friendly policies can attract global energy players. “When governments simplify business registration, improve contract transparency, and demonstrate a commitment to international partnership, investors gain confidence to commit long-term capital,” he said.
Despite Africa’s enormous energy potential, including 125 billion barrels of oil and 625 trillion cubic feet of gas, the continent faces an annual financing gap of USD31.5 billion to USD45 billion. Without sustained investment, production may stall, threatening energy security, economic growth, and job creation.
Ayuk also highlighted the need to scale renewable energy and nuclear projects. Africa invested just USD34 billion in clean energy between 2020 and 2025, while plans to add 15,000 MW of nuclear capacity by 2035 will cost over USD100 billion. He pointed to small modular reactors as a cost-effective option for delivering stable, reliable power to growing cities.
The AEC executive urged the World Bank to lift its ban on financing upstream oil and gas projects, arguing that responsible natural gas development can serve as a transition fuel, while revenues help finance renewable energy expansion. “Private capital alone cannot meet Africa’s energy needs. Multilateral support is essential,” he said.
Ayuk warned that Africa risks falling behind unless governments adopt transparent, predictable, and investor-friendly policies. “Africa’s energy future will not be secured through rhetoric or half-measures.
It requires action that gives investors the confidence to support oil, gas, renewables, and nuclear, and help end energy poverty,” he concluded.
