Africa's Energy Expenditure to Hit $110 Billion in 2024: IEA Report Highlights Investment Needs and Opportunities

Addressing this growth, IEA Africa Program Officer Rita Madeira will speak at the MSGBC Oil, Gas & Power 2024 conference in Dakar from December 3-4, providing insights into the energy access challenges and opportunities in West Africa.

In 2024, Africa's energy expenditure is projected to reach $110 billion, according to the International Energy Agency (IEA). The IEA's World Energy Investment 2024 report reveals that $70 billion of this expenditure will be allocated to fossil fuel supply and power. Addressing this growth, IEA Africa Program Officer Rita Madeira will speak at the MSGBC Oil, Gas & Power 2024 conference in Dakar from December 3-4, providing insights into the energy access challenges and opportunities in West Africa.

Madeira has extensive experience working with African governments on power and infrastructure projects. Her role at the IEA supports the continent's clean energy transition strategy and energy access goals. She has also focused on enhancing energy data collection and strengthening relationships between the IEA and sub-Saharan African countries. At MSGBC 2024, Madeira will discuss leveraging untapped hydrocarbon and renewable energy resources to advance regional power development.

To explore opportunities and foster partnerships in the MSGBC region's oil, gas, and power sector, visit www.MSGBCOilGasandPower.com to secure your participation at the conference. For sponsorship or delegate participation, contact sales@energycapitalpower.com.

The IEA report indicates that Africa's annual energy investments, at about 1.2% of the continent's GDP, are insufficient to achieve universal access and climate-related goals by 2030. An annual investment of up to $200 billion will be necessary through 2030 to meet the rising energy demand driven by population growth. The report emphasizes the need to accelerate investments in grid modernization and expansion, increase grant funding for vulnerable households, and de-risk projects to attract and scale up renewable energy funding.

Globally, investment in upstream oil and gas is expected to reach $570 billion this year, a 7% increase from 2023. Approximately 40% of this investment will go to existing fields, 33% to frontier fields, and 7% to unconventional petroleum-bearing formations.

The MSGBC region, home to major oil and gas discoveries like the $4.6 billion Greater Tortue Ahmeyim development (Mauritania-Senegal border), the $5.2 billion Sangomar field development (offshore Senegal), and the $4.6 billion BirAllah gas field (offshore Mauritania), anticipates significant investment in oil and liquefied natural gas development as new projects begin operations in the latter half of the decade.

Investment in sustainable energy by oil and gas companies grew to approximately $30 billion in 2023. Notably, investment in hydrogen electrolyzers rose to around $3 billion per year. Countries like Mauritania and The Gambia are advancing billion-dollar hydrogen projects, while others in the region focus on developing renewable energy systems. Key projects include Mauritania's $34 billion green hydrogen project, The Gambia's green hydrogen strategy, and Guinea-Conakry's 300 MW Amaria and 294 MW hydro projects.

At the 2023 MSGBC Oil, Gas & Power event, the IEA launched the Renewable Energy Opportunities for Mauritania report, presented by Madeira, highlighting Mauritania's wind and solar resources and sustainable economic development vision. This year, Madeira will expand on these findings, providing updates on capital expenditure projections, growth areas in MSGBC energy, and opportunities for grid modernization and expansion.