Africa’s Energy Overhaul Sparks Billions in Investment, Green Momentum

Africa’s energy sector is undergoing a dynamic transformation, marked by a sharp increase in capital expenditure. Oil and gas investments reached $47 billion in 2024, with a further $43 billion projected by the end of 2025, according to the African Energy Chamber. This growth is being driven by a new wave of policy reforms focused on four key areas: enhancing investment attractiveness, advancing natural gas monetization, strengthening environmental regulations and reinforcing local content requirements. 

Investment Incentives

To attract foreign capital, countries are adopting more business-friendly frameworks. In 2024, Mauritania launched a new Investment Code offering tax exemptions, customs relief and five-year tax holidays for projects in remote regions. Mauritania’s Agency for the Promotion of Investment also introduced a one-stop shop streamlining company registration to 48 hours. 

These reforms reflect a broader continental trend where established oil-producing countries are using fiscal incentives to revitalize their mature assets. In November 2024, Angola introduced its “Incremental Production” regime targeting offshore fields over 25 years old or with 70% reserves depleted. The decree slashes Petroleum Production Tax to 15% and Oil Income Tax to 25% for new development in mature blocks, improving cost recovery and encouraging redeployment. 

Gas Monetization

Gas is being positioned as a key growth driver, supporting power generation, industrial usage and exports. The Republic of Congo is currently finalizing its Gas Master Plan, which sets out fiscal and licensing frameworks for its 284 billion m³ of proven reserves. Unveiled at the Congo Energy & Investment Forum in March 2025, the plan sets out fiscal terms, customs exemptions and gas-specific frameworks, while streamlining licensing for exploration, infrastructure and sales.

A central motivation for Africa’s gas monetization policies is the drive to eliminate routine flaring. Libya aims to boost gas output to 4 billion cubic feet per day within five years while reducing flaring to near zero by 2030. A $1 billion partnership with Eni will capture 7.5 million cubic meters per day of associated gas across nine subsidiaries of the national oil company, Société Nationale des Pétroles du Congo, for use in electricity, fuel and ammonia production.

Carbon and Environmental Regulation

Efforts to decarbonize the energy sector are gaining ground. South Africa’s Just Energy Transition Investment Plan – supported by $12.9 billion in international funding – targets net-zero emissions by 2050. The plan is already backing initiatives such as coal plant decommissioning and the $497 million Komati solar-plus-storage project (72 MW solar, 150 MW battery), which is set to break ground in 2026.

Meanwhile, Mauritania adopted Africa’s first Green Hydrogen Code in 2024, regulating land use, environmental safeguards and project licensing. The framework is designed to align hydrogen development with national sustainability goals while offering clarity and stability for investors.

Local Content

Additionally, governments are increasingly prioritizing local value creation, workforce development, and skills transfer in energy projects. In Nigeria, the 2025 reform of the Oil & Gas Industry Content Development Act has raised the local content target to 70%. One of its most tangible outcomes is the Otakikpo oil terminal (OML 11), operated by indigenous firm Green Energy. Commissioned in June 2025, it is the first terminal fully built and managed by local stakeholders, unlocking development of over 40 previously dormant fields and advancing domestic capacity-building.