With the backing of international stakeholders, Africa is currently engaged in a series of ambitious cross-border infrastructure projects aimed at enhancing intra-African trade and investment. Strategically designed, these initiatives have the potential to boost local economic development, job creation, and contribute to energy security and resource sharing. In 2024 and beyond, these projects are expected to wield significant influence, collectively impacting both regional and global energy markets and shaping the trajectory of the African energy sector.
Angola: The Lobito Corridor
The Lobito Corridor is a transregional infrastructure initiative connecting the southern Democratic Republic of the Congo (DRC) and northwestern Zambia to global trade markets through Angola’s Port of Lobito. Supported by the African Development Bank, Africa Finance Corporation, the US, and the European Union, the project aims to de-risk, mobilize financing, and successfully implement the initiative. Intended to address logistical and infrastructural challenges in southern Africa’s mining sector, recent developments include a $455 million investment by Lobito Atlantic Railway for acquiring wagons and locomotives in Angola, with additional investments in the DRC and potential future investments in Zambia. This project holds the potential to streamline exports, boost economies, and attract Western partners to Africa’s mineral reserves.
Nigeria: Dangote Refinery
The Dangote Refinery, set to be the largest in Africa with a capacity of 650,000 barrels per day (bpd), includes a 435 MW power station, a deep seaport, and a fertilizer unit. Expected to begin operations in phases, with full capacity reached by 2025, the refinery will address fuel shortages in Nigeria, reduce petroleum costs, and position the country as a regional refining hub. Despite minor delays, the refinery represents a crucial milestone in expanding Nigeria’s downstream infrastructure.
Uganda: Lake Albert Development
The Lake Albert Development in Uganda involves two upstream oil ventures – the TotalEnergies-operated Tilenga project and the Kingfisher project operated by China National Offshore Oil Corporation (CNOOC). These projects, scheduled to commence production in 2025, will yield a combined production of 230,000 bpd. The development also includes the construction of the 1,443-km East African Crude Oil Pipeline (EACOP) to transport oil from Uganda to Tanzania’s Port of Tanga for international exports, with key stakeholders including TotalEnergies, Uganda National Oil Company, Tanzania Petroleum Corporation, and CNOOC.
Equatorial Guinea: Punta Europa Gas Mega Hub
Equatorial Guinea’s Gas Mega Hub (GMH), designed to foster intra-African gas trade, is expanding with a second phase processing gas from the Alba Field. The GMH aims to commercialize gas from the Aseng field and recently signed an MoU with Nigeria to tap into offshore gas resources near the shared border. This initiative positions Equatorial Guinea as a central gas-processing hub in the Gulf of Guinea.
MSGBC: 225 KW Regional Interconnection Line
The 1,677km, 225 KW regional electricity interconnection line, commissioned last month, is part of the Gambia River Basin Development Project spanning Senegal, The Gambia, Guinea-Bissau, and Guinea-Conakry. Collaborating utilities from these countries have facilitated a regional energy exchange, with the full completion of the project set to enhance energy resilience across 14 countries in West Africa, including Guinea-Conakry and Guinea-Bissau joining their MSGBC counterparts in energy sharing via the network.
