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African Mergers and Acquisitions (M&A) Set to Surge in 2026 as Licensing Rounds Open New Opportunities

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According to the African Energy Chamber’s 2026 Outlook, Africa’s upstream sector is set for a transformative year as strategic M&A and investor-friendly licensing rounds create new opportunities for both indigenous and international players

JOHANNESBURG, South Africa, November 5, 2025/APO Group/ –The African upstream sector is set for a dynamic year in 2026 as mergers and acquisitions (M&A) continue to reshape the continent’s energy landscape. According to the African Energy Chamber’s State of African Energy 2026 Outlook (https://EnergyChamber.org), African M&A activity is being driven by strategic realignments among global independents, international oil companies and indigenous operators, alongside a wave of licensing rounds offering new opportunities across both mature and frontier basins. These developments will be a major focus at next year’s African Energy Week (AEW) conference, where stakeholders are expected to explore how corporate transactions and licensing strategies are redefining Africa’s upstream sector.

 

Globally, upstream M&A totaled $51 billion in the first half of 2025, marking a decline from the second half of 2024. Market volatility, financial uncertainty and U.S. trade measures have prompted companies to adopt a more cautious approach, with deal-making concentrated in North America declining significantly. Internationally, deal volumes increased slightly but remained below historical norms, with corporate combinations driving transaction values while standalone asset sales slowed. Upstream firms are increasingly prioritizing capital returns to shareholders, focusing on bolt-on deals, joint exploration and development within their core regions.

In Africa, the M&A landscape is evolving rapidly. Global independent oil companies are divesting mature assets, creating space for local and regional players to expand. Over the past decade, Nigerian independents – including Seplat, Oando, First E&P, Amni, Conoil, Newcross, Aiteo, Neconde and Shoreline – have leveraged auctions and company acquisitions to build significant portfolios. The trend continued in 2024 and early 2025, with several high-profile divestments reshaping Nigeria’s upstream sector. Notable transactions include ExxonMobil’s sale of a 30% operated interest in Mobil Producing Nigeria Unlimited to Seplat Energy, Eni’s transfer of its onshore E&P subsidiary to Oando, and the divestment of TotalEnergies and Equinor ASA’s Nigerian assets to Chappal Energies Offshore.

March 2025 marked another milestone with Shell’s sale of its subsidiary, Shell Petroleum Development Company of Nigeria Ltd, to Renaissance – a consortium of five mostly indigenous Nigerian E&P companies. These deals highlight the growing role of local operators in onshore activities, while international players maintain a strategic presence in deepwater fields. Shell’s FID for the Bonga North deepwater project underscores renewed investor confidence, supported by Nigeria’s Petroleum Industry Act and streamlined divestment approvals.

The African oil and gas sector is set for significant consolidation in 2026, particularly among midsize and African independent companies

Elsewhere in Africa, international trading companies are also reshaping portfolios. Vitol’s $1.65 billion acquisition of Eni assets in Ivory Coast and the Republic of Congo strengthens its African footprint while securing LNG supply and trading synergies. Eni’s divestitures, part of a dual exploration model, retain operatorship while monetizing minority stakes to fund energy transition initiatives. Similarly, Shell’s acquisition of TotalEnergies’ 12.5% stake in Nigeria’s Bonga field for $510 million reflects a focus on high-return projects and supports its global production targets.

Licensing rounds across Africa are further fueling the M&A pipeline. Despite delays in Angola, Congo, Sierra Leone and Tanzania, early 2025 saw significant activity in Algeria and Libya. Algeria’s first bid round in a decade awarded five of six blocks, offering both new production sharing terms and improved royalty/tax arrangements. Libya’s first licensing round in 17 years, covering 22 blocks, introduced revised fiscal terms designed to attract investment. These developments signal a continued trend towards investor-friendly contracts across the continent, creating opportunities for both frontier and mature producers.

“The African oil and gas sector is set for significant consolidation in 2026, particularly among midsize and African independent companies. This trend is driven by a desire for a more efficient and competitive environment, which is ultimately beneficial for both the continent and the industry in the long term,” says NJ Ayuk, Executive Chairman of the African Energy Chamber.

He adds that while cash remains the primary currency for most deals in Africa, an interesting development is the increasing use of stock-for-stock swaps.

“The current climate in African oil and gas can be characterized by an ‘eat or be eaten’ mentality, with many companies prepared to be aggressive and opportunistic in 2026 as momentum builds,” notes Ayuk.

AEW 2026, set to convene industry leaders, policymakers and investors, will serve as a critical forum for discussing these M&A and licensing trends. Delegates can expect in-depth sessions on the strategic implications of asset divestments, the rise of indigenous operators and the impact of evolving licensing frameworks. With Africa’s upstream sector attracting increasing interest from international investors and regional players, AEW 2026 is positioned to highlight the continent’s growing role in global energy markets and the opportunities emerging from ongoing corporate realignments.

Click here (https://apo-opa.co/4ok3k89) to download the African Energy Chamber’s State of African Energy Outlook 2026.

Distributed by APO Group on behalf of African Energy Chamber.

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Zambia–Lobito Railway Moves Towards Financial Close as President Hichilema Meets Africa Finance Corporation (AFC) Leadership

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Project advances towards financing with preferred EPC bidders selected and letters of intent covering approximately 2 million tonnes a year signed

LUSAKA, Zambia, November 6, 2026/APO Group/ –His Excellency Hakainde Hichilema, President of the Republic of Zambia, has received a delegation from Africa Finance Corporation (AFC) (www.AfricaFC.org), led by its President and Chief Executive Officer, Samaila Zubairu, to review progress on the Zambia–Lobito Railway Project. AFC, the continent’s leading infrastructure solutions provider, is the lead sponsor and developer of the project.

The approximately 830-kilometre railway will connect Chingola in Zambia’s Copperbelt to Luacano in Angola, where it will link with the existing Benguela Railway and provide direct access to the Atlantic Ocean through the Port of Lobito.

 




 
 

A strategic component of the broader Lobito Corridor initiative, the project has reached several important development milestones. AFC last month announced preferred bidders for the engineering, procurement and construction (EPC) contracts for the Angolan and Zambian sections, following an international competitive tender. The project has also signed memoranda of understanding and letters of intent with prospective railway users covering approximately 2 million tonnes of freight a year.

Every tonne that leaves Zambia unprocessed takes jobs away with it

In addition to providing a direct Atlantic export route for Zambia’s copper and critical minerals, the project is being developed as an integrated economic corridor supporting agricultural exports, petroleum logistics, manufacturing and regional trade. Transit from the Copperbelt to the Port of Lobito is expected to take approximately seven days.

The project’s commercial strategy targets approximately 5 million tonnes of annual freight at steady state, comprising petroleum products, agricultural commodities, copper, cobalt, zinc and other industrial cargo. AFC is targeting financial close in 2027.

Discussions focused on continued collaboration between AFC and the Government of Zambia on the project’s next steps, including the railway’s right of way and land for associated agricultural, petroleum and freight-handling facilities. The meeting also considered rail sector policy measures to support the corridor’s long-term competitiveness, including integration with the Zambia Railways network and the Chingola–Ndola line.

President Hichilema reaffirmed the railway’s importance to Zambia’s economic development and regional integration. He said: “The Zambia–Lobito Railway is central to our vision of transforming Zambia into a competitive regional hub for trade, manufacturing, agriculture and mineral value addition. By connecting our productive sectors to international markets more efficiently, we can reduce logistics costs, attract investment and create jobs. We welcome AFC’s progress and will continue working closely together to advance this strategic project.”

Samaila Zubairu, President and Chief Executive Officer of AFC, said: “Every tonne that leaves Zambia unprocessed takes jobs away with it. This railway changes that. Starting in Chingola, it gives Zambia a seven-day route to the Atlantic and every reason to process, manufacture and add value at home. With preferred EPC bidders selected and strong interest from freight users, we are now working with the Governments of Zambia and Angola, the African Development Bank, the Government of Italy and our other partners to reach financial close. We are building a railway. Zambia will build an economy on it.”

AFC continues to work with the Governments of Angola and Zambia, the European Union, the United States Government, the Government of Italy and the African Development Bank, alongside Italian development finance institution CDP and Italian export credit agency SACE, to bring the Zambia–Lobito Railway into construction.

Distributed by APO Group on behalf of Africa Finance Corporation (AFC).

 




 

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Mukuru Partners with Flash to Add 170,000 Cash Pay-in Points Across South Africa

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New partnership brings remittance payments into township, peri-urban and rural spaza shops nationwide

JOHANNESBURG, South Africa, November 6, 2026/APO Group/ –Mukuru (www.Mukuru.com), a leading financial services provider, has partnered with Flash, a payments technology company with an extensive network of spaza shops across South Africa, adding 170,000 cash pay-in points where customers can now pay for their Mukuru remittance orders. The network includes Flash’s broader merchant footprint, giving Mukuru access to locations through Flash and its partner networks. These new locations are now operational, reducing the time and distance many customers currently travel to make a payment.

Previously, customers often had to travel to banks or dedicated payment outlets to pay for their Mukuru orders. Now, they can simply visit a spaza shop close to home, work or where they usually shop.

For people in townships, peri-urban and rural areas who rely on cash and have traditionally had limited access to formal pay-in points, particularly South Africa’s migrant communities, this change removes a real barrier and makes it easier to send money home. With these pay-in points inside spaza shops, Mukuru’s services become part of places people already go, meaning fewer extra trips and more timely payments.

Every additional pay-in point represents one less barrier for a customer trying to send money home

“Every additional pay-in point represents one less barrier for a customer trying to send money home,” said Erone Kyte, Commercial Manager: Cross-Border Remittances at Mukuru. “Our partnership with Flash gives us the scale to bring Mukuru’s services into the everyday spaces our customers already know and trust. It’s a meaningful step in making remittances simpler, more accessible and genuinely closer to the communities we serve.”

For Mukuru, working with Flash means reaching even more customers in underserved urban, township, and rural areas. By leveraging Flash’s established network, Mukuru can now offer cash pay-in options where they didn’t exist before. The expanded network is expected to help more people access Mukuru’s services, support growth in its South African customer base, and make cross-border payments more convenient.

Rens Rezelman, General Manager for Flash’s Merchant Division, commented, “Flash works to bridge the digital product and payments gap between businesses and consumers across the country. Launching Mukuru across our network presents another opportunity to bring a familiar brand closer to the people who need it most.”

The sector is now recognised as a R750 billion  industry. According to data tracked by Trade Intelligence, total turnover recently reached R197 billion, growing at roughly 15% annually. Research confirms that traditional trade and spaza shops are growing faster than large supermarket chains, with almost 80% of South African households shopping at these traditional trade outlets regularly. (https://apo-opa.co/4iDwZr8) Bringing Mukuru payments to these stores is a natural fit and helps shop owners draw in more customers and offer more services to their communities. Mukuru and Flash will build awareness of the new pay-in option through store, digital, and community promotions in the coming months.

This partnership is part of Mukuru’s ongoing drive to make cash pay-ins easier and improve access to remittance services for people living and working in areas with limited formal financial services. Over the past two years, the company has made similar moves to make its payment network bigger and more accessible across the region.

Mukuru customers looking to pay closer to home can easily find their nearest participating Flash pay-in point using the Mukuru app or website.

Distributed by APO Group on behalf of Mukuru.

 

 




 

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How CESI is helping shape Africa’s next-gen power grids

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CESI, a global engineering and consulting company specialising in power systems and energy transition, has supported utilities, transmission system operators and public institutions

CAPE TOWN, South Africa, November 6, 2026/APO Group/ –Across Africa, power systems are undergoing a profound transformation. Rapid population growth, urbanisation, industrial development and ambitious electrification goals are increasing pressure on networks that must improve reliability, integrate growing volumes of renewable energy and strengthen regional interconnections.

 




 
 

For utilities, regulators and governments, this creates a dual challenge: planning future power systems while modernising the infrastructure required to operate them safely and efficiently.

Drawing on projects delivered across the continent CESI, a global engineering and consulting company specialising in power systems and energy transition, has supported utilities, transmission system operators and public institutions in addressing both long-term planning requirements and grid modernisation challenges. These experiences highlight how strategic planning and operational modernisation are becoming increasingly interconnected.

Planning for growth in a changing energy landscape

Many African countries are updating power sector strategies to reflect changing demand patterns, evolving technologies and new regional opportunities. National master plans in countries including Angola, Mozambique and Liberia are examining how generation, transmission and distribution systems can evolve over the coming decades while remaining technically feasible and financially sustainable.

A key trend is the growing emphasis on integrated planning. Rather than treating generation, transmission and distribution separately, stakeholders are increasingly assessing investments across the entire value chain to meet future demand efficiently and reliably. Demand forecasting methodologies are also evolving, considering industrial development, electric mobility and broader electrification trends.

Renewable energy integration is another central consideration. Africa possesses significant solar, wind and hydropower resources, but integrating these technologies requires careful assessment of transmission capacity, system flexibility, reserve requirements and grid stability. In this context, CESI has contributed to power sector master plans and network studies evaluating future development pathways while addressing reliability, economic and energy transition objectives.

Regional interconnections as strategic infrastructure

Regional integration continues to play an increasingly important role in Africa’s electricity sector. Future Interconnection projects linking countries such as Ethiopia and Somalia, Uganda and Tanzania, and Uganda and South Sudan demonstrate how cross-border infrastructure can enhance energy security and optimise the use of available generation resources.

Delivering these projects requires more than engineering analysis. Technical, economic, regulatory and operational considerations must be aligned among participating countries. Through its involvement in several interconnection initiatives at different stages across Africa, CESI has supported stakeholders in assessing feasibility, network performance and operational requirements for cross-border electricity exchanges.

As regional power markets continue to develop, interconnected systems are expected to contribute further to reliability, operational flexibility and efficient resource utilisation.

Modernising grid operations for greater reliability

Alongside long-term planning, utilities are investing in modern operational technologies to improve management of increasingly complex power systems. Control centres, SCADA systems, energy management systems (EMS) and telecommunications networks are becoming essential components of modern grid operations.

In countries including Mozambique and Angola, projects are supporting the development of advanced control centres capable of monitoring generation facilities, transmission networks and interconnections through integrated operational platforms. These systems provide operators with real-time visibility and decision-support capabilities that strengthen system reliability and operational efficiency.

Meanwhile, programmes in Tunisia and Nigeria illustrate how utilities are upgrading ageing SCADA and EMS infrastructures to meet evolving requirements. Modern solutions increasingly incorporate

  • cybersecurity,
  • wide-area monitoring capabilities and
  • renewable energy management functions.

CESI’s experience in control centres, SCADA/EMS systems and power system operations reflects the growing importance of digital technologies in enabling more resilient and responsive electricity networks.

Building resilience and technical capacity

Environmental and social considerations are becoming increasingly important across both planning and modernisation initiatives. Climate resilience now plays a central role in infrastructure development, particularly in countries exposed to extreme weather events or heavily dependent on hydropower resources. As a result, environmental and social assessments are increasingly integrated into project design and investment decision-making processes.

Capacity building is equally important. New technologies and analytical tools require utilities and public institutions to continually strengthen technical capabilities. Training and knowledge-transfer programmes have therefore become integral components of many planning, interconnection and grid modernisation projects, helping organisations develop the expertise needed to manage increasingly sophisticated power systems.

An integrated approach to Africa’s power future

Several common themes are emerging across Africa’s electricity sector. Utilities are adopting longer-term planning horizons, renewable energy is becoming a central driver of network development, regional interconnections are expanding opportunities for power exchange, and digitalisation is transforming power system operations.

Together, these trends point towards a broader evolution of African power systems. The challenge is no longer simply expanding infrastructure, but ensuring that future networks are planned, operated and modernised in a coordinated manner. Achieving this objective will require continued collaboration among utilities, governments, regulators, financiers and technical stakeholders.

Experience across the continent suggests that integrating sound planning with targeted grid modernisation can support the development of more reliable, resilient and adaptable power systems, helping meet Africa’s long-term economic and social development goals.

CESI is a partner of ESI Africa, the power, energy, water, transport and utility multimedia platform that forms part of VUKA Group.

Read the article and access more information: https://apo-opa.co/47Xr1g3

Distributed by APO Group on behalf of VUKA Group.

 

 




 

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