Africa’s energy sector is undergoing a dynamic transformation characterized by rapid increases in capital investment. Investments in oil and gas are expected to reach $47 billion in 2024 and another $43 billion by the end of 2025, according to the African Energy Chamber. This growth is being driven by a new wave of policy reforms focused on four key areas: increasing investment attractiveness, increasing natural gas monetization, tightening environmental regulations, and strengthening locally sourced raw material requirements.
investment incentives
To attract foreign capital, countries are adopting more business-friendly frameworks. In 2024, Mauritania enacted a new investment law that provides tax exemptions, tariff reductions and a five-year tax deferral for projects in remote areas. Mauritania’s Investment Promotion Agency has also introduced a one-stop shop that streamlines business registration to 48 hours.
These reforms reflect a broader continental trend in which established oil producers are using fiscal incentives to revitalize mature assets. In November 2024, Angola introduced an “incremental production” regime for offshore oil fields that are over 25 years old or have 70% of their reserves depleted. The Decree lowers the oil production tax to 15% and the oil income tax to 25% for new developments in mature fields, improving cost recovery and encouraging redeployment.
gas monetization
Gas is positioned as a key growth driver supporting power generation, industrial use and exports. The Republic of Congo is currently finalizing its Gas Master Plan, which sets out the financial and licensing framework for 284 billion cubic meters of proven reserves. The plan, announced at the Congo Energy and Investment Forum in March 2025, provides fiscal conditions, tariff exemptions and a gas-specific framework, as well as rationalizing exploration, infrastructure and sales licenses.
A central motivation for African gas monetization policies is to eliminate routine flaring. Libya aims to increase gas production to 4 billion cubic feet per day within five years, while reducing flaring to near zero by 2030. The $1 billion partnership with Eni will see 7.5 million cubic meters per day of associated gas recovered for use in electricity, fuel and ammonia production across nine subsidiaries of state oil company Société Nationale des Petroles du Congo.
carbon and environmental regulations
Efforts to decarbonize the energy sector are in full swing. South Africa’s Just Energy Transition Investment Plan, backed by $12.9 billion in international funding, aims to achieve net-zero emissions by 2050. The plan is already supporting initiatives such as the decommissioning of coal-fired power plants and the $497 million Komati solar + storage project (72 MW of solar and 150 MW of battery storage), scheduled to break ground in 2026.
Meanwhile, Mauritania adopted Africa’s first green hydrogen code in 2024, regulating land use, environmental protection measures and project licensing. The framework is designed to align hydrogen development with national sustainability goals, while providing clarity and stability for investors.
local content
Additionally, governments are increasingly prioritizing local value creation, workforce development and skills transfer in energy projects. In Nigeria, the amendments to the Oil and Gas Industry Content Development Act 2025 raised the local content target to 70%. One of its most tangible results is the Otakipo Oil Terminal (OML 11), operated by indigenous company Green Energy. Commissioned in June 2025, the terminal will be the first to be built and managed entirely by local actors, unlocking development in more than 40 previously dormant sectors and driving domestic capacity building.
