Africa’s Energy Investment Outlook
Africa’s energy expenditure in 2024 is set to reach $110 billion, according to the International Energy Agency (IEA). The IEA’s World Energy Investment 2024 report reveals that $70 billion will be allocated to fossil fuel supply and power. In this context, IEA Africa Program Officer Rita Madeira will address the MSGBC Oil, Gas & Power 2024 conference in Dakar from December 3-4. She will provide insights into energy access challenges and opportunities in West Africa.
Emphasizing Solar Energy and Renewable Resources
Madeira’s experience with African governments on power and infrastructure projects supports the continent’s clean energy transition and energy access goals. At MSGBC 2024, she will highlight how untapped hydrocarbon and renewable energy resources can boost regional power development. The event will explore opportunities and foster partnerships in the MSGBC region’s oil, gas, and power sectors.
Energy Market Trends and Investment Needs
The IEA report indicates that Africa’s annual energy investments, about 1.2% of its GDP, are insufficient to achieve universal access and climate goals by 2030. The continent needs $200 billion in annual investments to meet the growing energy demand. Investments must accelerate in grid modernization, increase grant funding for vulnerable households, and de-risk projects to scale up renewable energy funding.
Upstream Oil and Gas Investments
Global investment in upstream oil and gas will reach $570 billion this year, a 7% increase from 2023. Existing fields will receive 40% of total upstream investment, with 33% allocated to frontier fields. Unconventional petroleum formations will get 7% of the investment. The MSGBC region, home to major discoveries like the $4.6 billion Greater Tortue Ahmeyim and $5.2 billion Sangomar field, expects significant investment in oil and liquefied natural gas development in the coming years.
Green Energy Policies and Developments
Investment in sustainable energy by oil and gas companies grew to $30 billion in 2023. Hydrogen electrolyzers saw the largest growth in low-emission fuel investment, rising to $3 billion annually. Mauritania and The Gambia are securing investments for billion-dollar hydrogen projects, while regional counterparts advance renewable energy systems. Notable projects include Mauritania’s $34 billion green hydrogen project and Guinea-Conakry’s 300 MW Amaria and 294 MW hydro projects.
During the 2023 MSGBC Oil, Gas & Power event, the IEA launched its Renewable Energy Opportunities for Mauritania report. Madeira presented key findings on Mauritania’s wind and solar resources and the government’s sustainable development vision. This year, she will update on capital expenditure projections and strategic growth areas in MSGBC energy, emphasizing opportunities for grid modernization and expansion.
Source：africa.com
