Cape town: African Exploration and Production (E and P) is experiencing a surge in attractiveness due to recent policy and licensing reforms aimed at enhancing investor returns and fostering deeper engagement across the continent.
According to African Press Organization, African nations predominantly occupy mid-range positions in global attractiveness scores, but strategic reforms and fiscal adjustments are set to strengthen investor interest.
Political change, civil activism, and new governance structures are reshaping the investment dynamics within African E and P. The influence of legacy European powers is diminishing, making way for increased involvement from foreign countries such as China, Russia, the U.S., and Middle Eastern investors. Recent elections in South Africa, Senegal, and Mozambique highlight how political changes can affect investor confidence and E and P activities.
Resource nationalism and local content requirements are becoming more significant as governments strive to optimize national benefits from hydrocarbons. This trend is evident in countries like Senegal, Mozambique, South Africa, Tanzania, and Namibia, where policies are being actively debated. The changing regulatory and social landscape could empower civil society and labor unions, while environmental scrutiny continues over exploration in sensitive regions such as the Democratic Republic of Congo (DRC), Namibia, and South Africa.
Amid a renewed interest in deepwater exploration, sub-Saharan African producers are conducting competitive licensing rounds to attract international operators and national oil companies (NOCs). Current and planned bid rounds in Angola, the Republic of Congo, the DRC, Nigeria, and Tanzania offer more attractive fiscal and contractual terms. African governments are also showing increased flexibility in engaging with a diverse investor base, including local independents, international NOCs, Middle Eastern banks, Asian export credit agencies, and global trading firms.
Countries like Angola and Nigeria have implemented reforms to unlock upstream investment, including streamlined mergers and acquisitions approvals, clearer legislation, and transparent licensing frameworks. Emerging markets such as Ivory Coast, Kenya, Namibia, and Senegal/Mauritania are under investor scrutiny as potential sites for strategic acquisitions and greenfield projects.
African governments are prioritizing gas regulation to unlock lower-carbon growth opportunities. Clear frameworks for the gas value chain are anticipated to stimulate domestic industrialization, power access, and international supply diversification. While projects like Congo Floating LNG have progressed, other initiatives in Nigeria, South Africa, and Tanzania face delays due to contractual and offtake uncertainties. Pending gas master plans and legislation in Angola, the Republic of Congo, Nigeria, and South Africa will be crucial in mobilizing Africa's undeveloped gas potential for export and domestic use.
Angola has emerged as a leading E and P investment destination in Africa, with its above-ground risk score improving since 2017 due to extensive regulatory and institutional reforms. The country's fiscal incentives have successfully attracted upstream investment, reinforcing its status as a continental leader.
Ivory Coast continues to support foreign investment, with authorities expected to maintain this approach regardless of the 2025 presidential election outcome. Emphasis on local content requirements, particularly for offshore developments, remains critical.
Mozambique is cautiously resuming onshore LNG projects following political stabilization and improved security in Cabo Delgado. TotalEnergies' Mozambique LNG project is set to resume in 2025, while Eni's Coral North FLNG project progresses. However, onshore development may be slow due to ongoing security risks.
Namibia is on the path to becoming a full producer, consolidating oil and gas oversight under the presidency and establishing an independent hydrocarbon regulator. Proposed increases in NOC NAMCOR's share and local content requirements aim to strengthen the sector, but may slow project approvals during a critical phase.
Nigeria is revitalizing its licensing program with updated terms and incentives, targeting specific terrains and resource types. The government's third licensing round in three years marks a shift from limited acreage availability. Renewed interest in projects like TotalEnergies' Ubeta and Shell's Bonga North highlights growing confidence in Nigeria's upstream potential.
African Energy Week 2026 will explore how clear regulations, competitive fiscal terms, and effective risk management are driving new investments and supporting Africa's long-term energy goals. NJ Ayuk, Executive Chairman of AEC, emphasizes the importance of balancing national priorities with investor confidence to unlock Africa's hydrocarbon potential.