With states fully recognizing the benefits that can result from the successful exploitation of oil and gas resources, the sector will be one of the main drivers of growth in Africa in the coming years. The Invest In Africa Energy (Iae 2025) forum, held in Paris on May 13 and 14, at the invitation of the African Energy Chamber and Energy Capital and Power, was a decisive moment in signalling that the revolution in Africa for significant growth will be driven by hydrocarbons.

Regional and sub-regional cooperation was one of the main calls from African stakeholders in the world of hydrocarbons. They made a resounding call for strengthened cross-border collaboration between states, with a plebiscite for the Grand Tortue Ahmeyim (GTA) project, which Senegal and Mauritania masterfully led together to complete its first phase. NJ Ayuk, Executive Chairman of the African Energy Chamber, welcomed the success of the GTA gas project between Mauritania and Senegal with the deliveries of the first LNG cargoes this April. This is the same assessment that Mouhamed Ould Khaled, Mauritanian Minister of Energy and Petroleum, will have, highlighting a special and innovative alliance between Senegal and Mauritania to resolve legal, fiscal, revenue sharing and environmental management issues that facilitate the conduct of the Gta project.

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Furthermore, the Mauritanian minister says that previous experiences in managing a shared resource like water within the Senegal River Development Organization (OMVS) have facilitated collaboration in many ways. NJ Ayuk believes that nationalist postures have their merits, but for now, in Africa, the importance of hydrocarbon potential and the resulting promises of growth must strengthen alliances. Senegal and Mauritania have shown a path, and this is one to follow, according to this advocate of an Africa of energy.  « No country has been able to carry out cross-border projects like Mauritania and Senegal. They have shown that it is possible in Africa to unite and collaborate across borders. » This statement by the president of the African Energy Chamber is a militant plea for more regionalism and experience sharing for the benefit of Africans.

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Many in the African hydrocarbon sector see natural gas as the « strategic engine » from which a true economic, industrial, energy, and social revolution will occur. It is thus through its strategic marketing, supported by national development policies that emphasize diversification into other sectors, that it will be possible to consolidate the development of African states. Having world-class deposits and gigantic reserves is one thing, but knowing how to transform their exploitation into a source of revenue that transforms economies and societies is the real challenge facing African nations.  The hydrocarbon potential must generate sustainable and inclusive growth for new countries in this industry, such as Namibia, Mozambique, Mauritania, Sierra Leone, or Senegal, resulting in unprecedented industrial development both upstream and downstream. For example, a country like Namibia has quickly become the darling of the hydrocarbon world, with massive offshore discoveries made in the Orange Basin by companies such as TotalEnergies, Rhino Resources, Galp, and Shell.  A country like this, with such considerable discoveries, must quickly adapt its development policy to a new situation that will change its face forever. The country’s authorities are well aware of this, and the Petroleum Commissioner at the Namibian Ministry of Mines and Energy, Ms. Maggy Shino, said that Namibia is committed to accelerating the development of its hydrocarbon industry and fostering a responsible investment environment.

African gas, beyond being an export product that generates abundant revenue to supply our states’ coffers, must be at the centre of promoting a local industry impacting electricity production, transportation, petrochemicals, and agro-industry. It must also be a resource that can contribute to better harmonization of regulations between the West, East, North, and South regions of Africa.

Mauritanian Commitment to Energy Sovereignty

Mauritania was a shining example of this year’s Invest in African Energy Forum. Despite Senegal’s lack of presence, our neighbours presented a methodical roadmap for their hydrocarbons sector, driving economic and industrial development. First, Mauritania communicated a transition in its electricity sector, now advocating for a production model in which privatization would play a major role. Electricity generation on Mauritanian territory would be entrusted to private companies, with the public electricity company gradually withdrawing from this privatized activity.  « All new electricity generation projects in Mauritania will be private. Public companies will no longer participate in electricity production, » declared Mauritanian Minister of Petroleum and Energy Mohamed Ould Khaled, before an audience surprised by the audacity of a country that has just launched calls for tenders for a new power plant to be powered by production from the Grand Tortue Ahmeyim (GTA) gas project. In the same vein, a framework is being put in place to allow independent power producers to use gas and operate two power plants with a generation capacity of 550 MW.

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Mauritania’s electricity sector reform is bold, but it ultimately aims for a major industrial modernization by impacting the mining and metallurgy sectors. It also relies on an energy mix similar to that pursued by Senegal over the past decade, with the exploitation of solar power and the promotion of green hydrogen.   When you have a deep-water gas field like BirAllah at your disposal and the next stages of the GTA project, which aims to produce 10 million tonnes of LNG per year, in your sights, you can afford to dream, and do so boldly. May this boldness cross the Senegal River and contaminate our public authorities!

The need to be innovative in the search for funding
125 billion barrels of proven oil reserves and more than 620 trillion cubic feet of natural gas give an idea of ​​Africa’s hydrocarbon potential. Faced with this abundance of resources, the financing paradox, which arises for many countries, has been one explanation for the delay in a sustained pace of endogenous development. To address the financing issue, some stakeholders in the hydrocarbon sector suggest regional cooperation and the use of innovative financial mechanisms.  By collaborating on shared resources, it is possible to reduce risks and harmonize legislation to facilitate business initiatives. It is within this framework that it is urgent that an African bank dedicated to energy emerge, drawing inspiration from existing funds on the continent dedicated to infrastructure and economic development. Such a body could make considerable resources available for major projects, reduce risks between states, and, above all, offer greater room for manoeuvre. It is by using innovative financing tools and regional cooperation mechanisms that Africa will be able to increase its investments in the development of the hydrocarbon sector. Several participants at the Invest In African Energy forum emphasized the need to guarantee the predictability of our economies and ensure transparency in the actions of our public authorities. Many investors in the hydrocarbon sector criticize our continent for the uncertainty of its legal and regulatory frameworks, which hinders the desire for large investments. This is an inconsistency that must be corrected in order to stimulate real growth.

The only sour note of this edition of the IAE 2025 forum was Senegal’s absence. There are certain events our country must not miss. The work of representation and lobbying to promote Senegal is an integral part of the governance mission. It’s up to our authorities to understand this!

By Serigne Saliou DIAGNE / saliou.diagne@lequotidien.sn

  • Translation by Ndey T. SOSSEH