Africa’s Energy Sector Targets Major Growth

Africa’s upstream oil and gas sector is expected to expand strongly in 2026 as production and investment across the continent continue rising steadily.

Africa’s rapidly growing upstream sector is projected to reach about 11.4 million barrels of oil equivalent per day in 2026, according to projections from the African Energy Chamber (AEC). The organisation also estimates that capital expenditure across the continent’s oil and gas industry will rise to approximately $41 billion, reflecting stronger investor confidence and expanding energy activities.

The African Energy Chamber said the increase in investment is creating a wider pool of experienced operators and investors now seeking opportunities beyond Africa’s domestic energy market. According to the report, African energy investors are increasingly targeting major projects in South America, especially Brazil’s offshore pre-salt sector and Argentina’s growing LNG and pipeline infrastructure developments.

The organisation explained that stronger balance sheets among African sovereign wealth funds, state-backed investment firms, and independent energy companies are driving this outward investment strategy. Brazil’s deepwater offshore projects remain among the world’s most competitive oil developments, while Argentina’s Vaca Muerta shale project continues expanding through LNG exports, gas monetisation, and pipeline construction.

The African Energy Chamber also highlighted opportunities in Brazil’s offshore gas infrastructure, FPSO developments, and subsea operations, alongside Argentina’s planned gas processing and pipeline expansion projects.

African investors entering the South American market are bringing valuable experience gained from offshore and LNG developments in countries such as Nigeria, Congo, Cameroon, and Mozambique, particularly in floating LNG and gas commercialisation projects.

“The Atlantic has historically been treated as a barrier between these two regions,” said NJ Ayuk, Executive Chairman of the African Energy Chamber. “The reality is that it is a corridor.”

The organisation added that it is strengthening partnerships between African governments, national oil companies, and Latin American energy stakeholders to encourage broader cooperation in oil, LNG, and infrastructure development.

Do you think Africa’s growing energy investments abroad will strengthen the continent’s long-term oil and gas industry?