Monday 1st December 2025
by inAfrika Newsroom
African E&P investment reforms are making the continent more attractive to explorers, according to a new African Energy Chamber outlook released today. The “State of African Energy 2026” report finds that several producers improved licensing terms, fiscal clarity and regulatory stability over the past year.
The chamber highlights Angola, Namibia, Senegal, Tanzania and Mozambique among countries that adjusted laws or signed new production-sharing agreements. These steps aim to reduce above-ground risk for oil and gas investors while still protecting national interests.
In many basins, onshore and shallow-water plays now dominate near-term drilling plans. They usually carry lower costs and faster development timelines than ultra-deepwater projects. Meanwhile, companies increasingly pair exploration prospects with gas-to-power or LNG concepts that can support both domestic demand and exports.
Even so, the report warns that finance is shifting. Banks and funds screen projects against climate targets and governance benchmarks. As a result, African E&P investment reforms must move in step with global capital expectations, not just local politics.
African E&P investment reforms matter because oil and gas still provide major revenue for many states. Royalties, taxes and national company dividends fund roads, schools and health services. However, without clear rules and credible institutions, investors can easily delay or cancel projects.
Sharper governance can lower borrowing costs, speed up approvals and reduce disputes. In turn, that stability allows governments to negotiate better local-content, gas supply and decommissioning obligations.
At the same time, global energy systems are changing fast. Demand for some African crudes may peak within two decades. Therefore, countries that act early on reforms can harvest value while planning for a lower-carbon future. Those that move slowly risk stranded assets and fiscal shocks.
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