In 2021, numerous oil and gas discoveries were made throughout Africa, with many heralding the continent as the “final frontier in oil and gas exploration”. Given the turn of events in Ukraine, developing the oil and gas sector appears to be an encouraging and lucrative endeavour as European countries seek to reduce dependence upon Russia.
However, further investments in the sector represent a considerable risk for African exports, especially as countries simultaneously transition to clean energy sources in light of the global commitment towards achieving net-zero by 2050. More than $2.8 trillion in investments will be required for Africa to attain net-zero by 2050. So far, investments toward a cleaner energy mix in Africa fall significantly short. Rather than playing catch-up in the future to meet clean energy targets, future financing and investments in Africa should already aim for clean, efficient, and renewable energy.
This article in Inc.Africa, by our CEO, Paul Baker and Policy Researcher, Zahraa Beeharry, looks at whether investing in oil and gas in Africa is viable in a world moving increasingly towards renewables.