Fueled by escalating global demand and an expansive, yet largely untapped, resource portfolio, Africa is on the brink of a transformative shift in its energy sector. Foreign investors are keen to leverage diversified supply chains, while African governments’ initiatives to boost industrialization and economic growth present a new array of opportunities for financiers and project developers. In 2024, several markets emerge as promising investment destinations.
Senegal:
Senegal is poised for an impressive 10.6% economic growth in 2024, as per the International Monetary Fund. This surge is attributed to the initiation of new oil and gas projects, including the Greater Tortue Ahmeyim and Sangomar Oilfield developments set to commence production in H1, 2024. The success of these projects underscores their potential for large-scale investments, stimulating further growth and opportunities in the burgeoning market. The anticipated success in 2024 is expected to trigger additional projects, creating a wave of investment opportunities for foreign players in the gas and power sectors. Senegal’s efforts to establish itself as a regional energy hub are also paving the way for new investments in the infrastructure sector, with the government inviting private players to participate.
Ivory Coast:
Anticipating a 7% GDP growth in 2024, Ivory Coast is positioned to benefit from sustained investments in network infrastructure, including digital, transportation, and energy sectors. Serving as the economic engine of Francophone Africa, Ivory Coast is actively seeking investment in these industries to drive regional growth. The World Bank predicts that ongoing investments, coupled with recent oil discoveries and robust macroeconomic policies, will boost business confidence and lead to a significant increase in productivity. Projects like Eni’s Baleine venture, which secured a $10 billion investment in November, along with drilling campaigns in on- and offshore basins, are crucial in attracting new investments.
Namibia:
With significant oil and gas discoveries in 2022 and 2023, Namibia ranks among Africa’s top investment destinations in 2024. Notably, Shell’s Graff-1X, La Rona, Lesedi-1X, Jonker-1X, and TotalEnergies’ Venus-1X are expected to trigger a wave of investments in Namibia’s upstream sector. The country’s untapped potential in renewable energy, particularly as one of the world’s most attractive green hydrogen markets, is drawing foreign investments. Key projects like the $10 billion initiative by Hyphen Hydrogen Energy, the 2.5 GW Tumoneni project, and the 42 MW Daures Green Hydrogen Village project are poised to strengthen Namibia’s position in the global green hydrogen market, presenting new opportunities for investors.
Angola:
With a diverse energy portfolio and aspirations to become a regional supplier, Angola is a strategically significant investment destination in 2024. Projects such as TotalEnergies’ Begonia oil project, Angola LNG development, and Agogo Oilfield development, coupled with efforts to enhance refining capacity through the construction of three new facilities, underscore the country’s long-term development plan and investment potential. On the renewables front, Angola is eager to capitalize on untapped resources, inviting developers and power players to invest. The country’s privatization program is a crucial initiative poised to drive private and foreign investments across the entire economy.
South Africa:
As South Africa addresses surging energy demand, combats load shedding, and prioritizes environmental sustainability through diversified energy sources, the country offers substantial investment opportunities for global stakeholders. Initiatives like the Renewable Energy Independent Power Producer Procurement program (REIPPP) and the Integrated Resource Plan serve as key drivers of investment, attracting private players. Bid Window 7 of the REIPPP, targeting the delivery of up to 5 GW of renewable capacity, presents a significant pathway for increased participation from private entities and investors in renewable energy and infrastructure development, setting the stage for a robust project pipeline.
