On the back of growing global demand and with a largely untapped resource portfolio, Africa is on the cusp of transforming its energy sector. Foreign investors are eager to capitalize on diversified supply chains while efforts by African governments to bolster industrialization and economic growth are unlocking a fresh slate of opportunities for financiers and project developers alike. In 2024, several markets stand out as promising investment destinations.

Senegal

According to the International Monetary Fund, Senegal is projected to experience a remarkable 10.6% economic growth in 2024, fueled by the commencement of new oil and gas projects like the Greater Tortue Ahmeyim and Sangomar Oilfield developments – both of which are slated to begin production in H1, 2024. These projects have demonstrated the success and potential of large-scale investments and are poised to stimulate further growth and opportunity across the burgeoning market. Other projects are expected to kick off on the back of 2024 project success, opening up a wave of investment opportunities for foreign gas and power players alike.

Additionally, the country’s efforts to establish itself as a regional energy hub will unlock new investment avenues across the infrastructure sector. Frameworks such as the Plan for an Emerging Senegal – a reference for the country’s mid- and long-term economic and social policy development – have identified lucrative investment opportunities, and the government is inviting private players to participate in the growing market.

Ivory Coast

Anticipating 7% GDP growth for 2024, Ivory Coast is set to benefit from persistent investments in network infrastructure, including the digital and transportation sectors, as well as energy. The country represents the economic engine of Francophone Africa, and as such, is inviting investment in these industries to stimulate regional growth. The World Bank predicts that these investments, combined with recent oil discoveries and sound macroeconomic policies, will not only bolster business confidence but also drive a significant uptick in productivity. Ongoing projects, such as Eni’s Baleine venture – which secured $10 billion investment by the company last November -and drilling campaigns in both on- and offshore basins are poised to play a pivotal role in attracting new investment.

Namibia

Rich in natural resources, Namibia ranks amongst Africa’s top investment destinations in 2024. The discovery of up to five substantial oil and gas reserves in 2022 and 2023 – namely, Shell’s Graff-1X, La Rona, Lesedi-1X, and Jonker-1X, as well as TotalEnergies’ Venus-1X – is poised to trigger a wave of investments in Namibia’s upstream sector.

Furthermore, the country’s untapped potential in renewable energy has emerged as a significant catalyst for foreign investments. Positioned as one of the world’s most attractive green hydrogen markets, Namibia is poised to draw additional investments into its renewable energy landscape. Notable projects – such as the $10 billion initiative by Hyphen Hydrogen Energy; the 2.5 GW Tumoneni project; and the 42 MW Daures Green Hydrogen Village project – are set to consolidate Namibia’s dominance in the global green hydrogen market, opening newfound opportunities for investors.

Angola

With a diverse energy portfolio and national efforts to become a regional supplier, Angola stands out as a highly strategic investment destination in 2024. Efforts to boost hydrocarbon production through projects like TotalEnergies’ Begonia oil project; the Angola LNG development; and the Agogo Oilfield development, as well as to advance refining capacity through the construction of three new facilities, reaffirm the country’s long-term development plan and investment potential. On the renewables front, the country is eager to capitalize on untapped resources and is inviting developers and power players to invest in the industry. Furthermore, the country’s privatization program stands as a crucial initiative which will drive private and foreign investments across the entire economy.

South Africa

As South Africa endeavors to meet surging energy demand, tackle loadshedding, and foster environmental sustainability through diversifying its 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 are already key drivers of investment, enticing private players to invest. Recently, Bid Window 7 of the REIPPP opened, targeting the delivery of up to 5 GW of renewable capacity. This serves as a significant pathway for South Africa to secure increased participation from private entities and investors in the realms of renewable energy and infrastructure development, setting the stage for a strong pipeline of projects.