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Africa’s Upstream Industry: Holding Steady in a Turbulent Oil and Gas Market (By NJ Ayuk)

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oil and gas

We encourage all parties to investigate – and invest in – Africa’s rising stars for long-term energy solutions

JOHANNESBURG, South Africa, December 13, 2022/APO Group/ — 

By NJ Ayuk, Executive Chairman, African Energy Chamber

Africa’s oil and gas industry is going to breathe new life into many African economies and will create new opportunities for every many Africans in 2023. During the recent African Energy Week, many players and host nations outlined some of the most ambitious plans produce more natural gas, diversify our economies and create more jobs especially for women and our young people. This is a better plan than development aid.

In September 2022, the EU approved an additional 15 million euros to support counterinsurgency efforts in Mozambique. That fresh funding – intended to protect the natural gas-rich area of Cabo Delgado – brings the bloc’s total support up to 104 million euros this year.

This sudden involvement in the area’s five-year security saga highlights Europe’s newfound interest in a stable, energy-producing Africa.

Oil prices spiked to $85 a barrel by November and currently show no signs of slowing. The Russia-Ukraine conflict has sent shockwaves through the entire oil and gas industry, with Western nations, particularly in the EU, searching for alternate fuel sources. While the U.S. immediately banned Russian oil imports in March, similar measures by the U.K. and EU were put off until December.

As we point out in our released report, “The State of African Energy: 2023 Outlook,” During African Energy Week, African oil and gas production remains steady — and fairly immune to the Ukraine-Russia conflict.

Oil – Marginal increase

Take Nigeria, whose oil production hit a 30-year low this August but is now projected to see an overall increase through 2023. By tackling its most dramatic setbacks, the West African nation has managed to maintain equilibrium.

One such setback came to light at the Forcados crude oil terminal in July, when operators discovered leaks around the loading buoy, halting exports from the terminal. The operators, Nigerian National Petroleum Company (NNPC) Limited and Shell Petroleum Development Company (SPDC) of Nigeria, promptly promised to repair the leaks and resume exports by late October — and they met the self-appointed deadline.

Last summer also saw a huge escalation in pipeline theft that culminated in Nigeria losing its spot as Africa’s biggest oil producer. Ironically, this may have served as a much-needed wake-up call to tackle the decades-old problem of theft. After a July and August that saw Nigeria’s output fall below 1 million bpd, the government awarded security contracts to protect the pipelines. The tactic yielded fruit within a month when contractors uncovered an illicit pipeline that had been siphoning stolen oil for nine years. By November, Nigeria’s output had climbed back to 1 million bpd.

This sudden involvement in the area’s five-year security saga highlights Europe’s newfound interest in a stable, energy-producing Africa

Libya experienced an even more dramatic pendulum, with production falling from 1.2 million barrels per day (bpd) to 100,000 bpd this spring. In a now-familiar pattern, the conflict between two competing governments led to production outages and blockades. By August, however, production had returned to a steady 1.2 million bpd.

These setbacks in Nigeria and Libya have something in common: The solutions came from within. In a world reeling from the ripple effects of the Ukraine conflict, any producer that can tackle its largest issues in-house, without relying on geopolitical trends, deserves some notice.

Europe seems to share this attitude. Total and Eni are “close” to finalizing oil production deals with Libya, where BP is also due to begin new onshore drilling. These reassuring signs all address the other major challenge shared by Libya, Angola, and Nigeria: Lack of new projects and foreign investment. Exxon also recently discovered a new well in Angola, another nation in need of fresh prospects. I had a chance to keynote the Angola oil and gas gathering and held discussions with key industry players. There is fresh hope and excitement on the horizon.

Even without factoring in these recent deals, our 2023 report predicts marginal growth for Africa’s oil production at just over 7 million bpd. Intriguingly, a stable Libya and fresh projects could see that output grow to 7.25 million bpd by 2030. In the Russia-roiled short term, Africa’s sheer consistency offers relief to energy-hungry nations – and in the long term, potential energy security.

Gas – Growing Steady

As with oil, Africa’s natural gas output remains quite resilient to the Ukraine-Russia conflict. Some nations have already stepped up their exports to Europe, and several major projects are on track for production by 2030. While our report predicts a marginal decline in production for the short term, the continent’s overall future looks bright.

Take Algeria, whose Berkine field went from discovery to production in record-breaking time. NOC Sonatrach discovered the 12 trillion cubic feet (tcf) in reserves in March and, in partnership with Italian major Eni, began production by November. The deal was enabled by Algeria’s international oil company (IOC)-friendly hydrocarbon law and bodes well for Eni’s and Sonatrach’s agreement to increase Italian imports by 20%.

Similarly accommodating of IOCs, Mauritania and Senegal are also growing strong. Their Tortue/Ahmeyim field contains approximately 15 tcf of gas, with operators hoping to begin production in 2024. Mauritania is also in talks with BP to develop their equally rich BirAllah (https://bit.ly/3HwydU8) gas field. While young in the industry, the two nations have proven quite competent at cooperating with both each other and international majors.

Even more intriguing, war-torn Mozambique began exporting natural gas to Europe this November – an unexpected first. This milestone likely owes something to the EU’s recent investment in Mozambique’s security. The question remains, of course, whether Mozambique will remain stable enough to continue these gains  and truly become a part of Europe’s energy security solution.

Short- and Long-Term Goals

On the surface, the state of Africa’s energy is a simple one – the continent’s production should remain steady in the short-term and has already offered Europe some energy relief. Underneath the surface, of course, individual nations face different circumstances and play their own parts in the larger picture. Libya, with its history of alternating peaceful production and violent dry spells, is a very different nation from a stable newcomer like Senegal. As the West eyes Africa for long-term energy security and the green transition, it behooves them to examine individual nations for their strengths, weaknesses, and unique opportunities for partnership. We encourage all parties to investigate – and invest in – Africa’s rising stars for long-term energy solutions.  

Distributed by APO Group on behalf of African Energy Week (AEW).

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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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