Africa’s annual capital expenditure (capex) is projected to increase to $54 billion by 2030 from $43 billion expected in 2025, according to the African Energy Chamber’s (AEC) (https://EnergyChamber.org/) State of African Energy: 2025 Outlook. Subsequently, exploration drilling across the continent will rise, with spending surpassing $6 billion in 2024. With a slate of licensing rounds and a surge in M&A activity expected this year, Africa is gearing up for accelerated growth across its oil and gas sector.

The continent’s largest energy event – African Energy Week (AEW): Invest in African Energies – serves as a strategic opportunity for governments, operators and banks to sign deals and advance oil and gas projects. Uniting the industry from September 29 to October 3, 2025, in Cape Town, the event will build on its history as a premier dealmaking platform to drive investment and development in African energy.

African M&A Shows Strong Growth

African M&A activity showed a 73% increase in the first quarter of 2024 compared to 2023, reaching $12.7 billion by July. This growth was largely attributed to IOCs expanding their portfolios, with major players Shell, bp, Chevron, Galp and MedcoEnergi collectively accounting for 83% of spending ($10.6 billion). The AEC’s 2025 outlook states that M&A was bolstered by growing interest by Asian and Middle Eastern NOCs in Africa. Major transactions include the Abu Dhabi National Oil Company’s joint venture agreement with bp in Egypt and its acquisition of a 10% interest in the Mozambique LNG project. Meanwhile, regional players and African NOCs have acquired 15 billion barrels equivalent in hotspots such as Namibia, Angola and Mozambique since 2019. With approximately $16 billion in assets holding over three billion barrels currently on the market, Africa’s oil and gas market remains ripe with opportunity.

Upcoming Investment Opportunities

Upcoming bid rounds in Africa highlight a renewed push by governments to attract fresh investment in block opportunities. In North Africa, Libya will launch a bid round featuring 22 exploration blocks in early-2025. Egypt and Algeria have both launched licensing rounds in recent months, offering 12 exploration blocks and six onshore blocks, respectively. In Southern Africa, Angola will launch its 2025 Bid Round this quarter, featuring nine offshore blocks in the Kwanza and Benguela Basins. Tanzania plans to promote 24 exploration blocks in March 2025 while South Africa is expected to open offshore and onshore acreage in 2025. In West Africa, Mauritania is preparing to launch a 15-block round this year while Liberia and Nigeria both launched bid rounds in late-2024, offering 29 offshore blocks and 12 deepwater and shallow blocks, respectively.

The Impact of AEW 2025

Since its establishment, AEW: Invest in African Energies has supported M&A activity by fostering dealmaking and partnerships. In 2024, five deals were signed, including a partnership between the Congo and Azerbaijan NOCs; a trade finance agreement between Afreximbank and Dorman Long Engineering; and a letter of credit by Afreximbank for JE Energy. Four deals were signed in 2023, including an Afreximbank-Alphaden Energy & Oilfield loan agreement; an AEC-Black Impact Foundation partnership; and a hydrogen deal between Gambia’s Ministry of Petroleum and Energy and H2 Gambia Limited. In 2022, four deals were signed, with signatories including Afreximbank, Sasol, Techni Energies, Namcor, AMCO, Amni International and Moneda Invest. This momentum is expected to continue in 2025, as companies travel to Cape Town to invest in African energy.

“These deals underscore the event’s role as a premier dealmaking platform while signaling a strong commitment by governments, operators and financiers to advance oil and gas projects in Africa. AEW: Invest in African Energies goes beyond discussing Africa’s investment opportunities to drive actionable progress towards making energy poverty history by 2030,” states Ore Onagbesan, AEW Program Director.