Africa: Call to tackle ‘financial apartheid’ in energy sector

We have a window of opportunity to drive the energy sector forward in Africa, says AEC chair

The gas industry in Africa will continue to grow and exploration will continue unabated.  This was the bullish message by Executive Chairman of the Africa Energy Chamber (AEC), NJ Ayuk, as he officially opened African Energy Week 2025 in Cape Town, South Africa on Tuesday, 30 September.

But Ayuk cautioned that red-tape and bureaucracy were causing project delays across the continent and were an investment deterrent. 

“We have a window of opportunity… to drive the energy sector forward in Africa… but it shouldn’t take five, ten or 20 years to have projects approved,” he said.

He also called for collective action from African countries to activate funding, decrying what he termed “financial apartheid” being practised by global lending institutions.

“We need to stop these exclusionary rules. You can’t as financial institutions hold African pension funds but refuse to finance projects on the continent,” said Ayuk.

Energy projects needed to drive Africa forward

Leaning in on his “drill, baby drill” mantra, he said Africa is “moving forward with energy.”

“We are going to produce every bit of hydrocarbon we can find.” The output of which, said Ayuk, will continue to build vital infrastructure across Africa.

“Our continent’s time is now. We know what it means to not have energy,” he said.

Investing in Africa’s potential

Ahead of Tuesday’s opening, investors, lenders and strategic partners with “high-potential projects” gathered at the Premier Invest Deal Room at African Energy Week 2025: Invest in African Energies.

According to event organisers, it “offered a showcase of Africa’s leading energy investment opportunities, presenting deals totalling $13.4 billion across upstream, midstream, downstream and renewable sectors.”

Opening the session, René Awambeng, Founder and Managing Director of Premier Invest, described the Deal Room as “a catalyst for investment and innovation,” emphasising its role in giving project sponsors a platform to present transactions to a targeted audience. 

Awambeng noted that recent policy shifts, particularly in the US, are creating renewed momentum for investment across the sector.

David Thomson, Vice President of Sub-Saharan Africa at Welligence, underlined the long-term potential for mergers and acquisitions across the continent, projecting that by the end of 2025 and into 2026, a significant number of corporate and asset deals are expected to come to market. 

Welligence said there are currently 159 opportunities across 18 countries and 102 assets, with greenfield and early-life production projects likely to attract strong investor interest.

Funding opportunities in the energy sector in Africa

Organisers said that the Deal Room featured a diverse range of projects seeking funding. 

In the oil and gas sector, 18 projects were seeking a combined $12.55bn, including: 

• a Central African oil field acquisition and development project requiring $45.2 million 
• an East African gas license in need of $49.9m 
• a Guyanese oil block seeking a $25m equity investment with potential reserves of 400 million barrels
• a gas monetisation project in West Africa requested $71.7m in financing
• a major Nigerian oil field redevelopment aimed to secure $150m to accelerate operations

 

Midstream opportunities highlighted six projects seeking more than $2bn in total, including: 

1. The acquisition of a strategic gas infrastructure asset for $100m
2. A $16.27m debt facility to support a company’s consolidation and expansion
3. Another notable midstream initiative included a Caribbean LNG development in Grenada 
4. Construction of an oil storage tank farm in Southern Africa with $60m in financing 
5. A 100MW thermal power plant in Guinea seeking $145m
6. A West African tank farm aiming to double capacity with $47m in debt financing

 

Downstream projects were also prominent, with seven initiatives seeking over $10.2bn in investment. 

Among these were: 

• the construction of two crude oil refineries in Southern Africa, including one requiring $4.8bn in financing 
• a 30,000-bpd refinery in West Africa seeking $160m
• a defunct Caribbean gas-to-liquids plant with an estimated $50m EBITDA when operational
• expansion of a refinery serving Western DRC and a downstream LPG distribution network requiring $57.4m

 

Renewable energy projects rounded out the Deal Room. 

These included: 

• a 43MW clean gas project in Benin ($84m)
• a 71MW hybrid solar PV and wind project in Zambia ($92m)
• a 100MW solar PV project in South Africa ($87m) 
• a 100MW clean-gas project in South Africa ($100m) 
• a 70MW geothermal project in Kenya ($362m)
• a 5MW kinetic power plant in Mali (€20m) 
• a 120MW solar PV project with 240 MWh battery storage in Southern Africa ($105m)

Cover photo:   Executive Chairman of the Africa Energy Chamber, NJ Ayuk delivers his opening address at African Energy Week in Cape Town on Tuesday, 30 September. Source: ESI Africa