Despite Africa’s oil and gas market being forecast to grow by more than 5.5% annually through 2027, operators and investors continue to face extended timelines from project inception to first production. For Africa, accelerating these timelines is crucial for maximizing returns, maintaining a competitive advantage and ensuring the timely delivery of resources to meet rising energy demand. The Invest in African Energy (IAE) Forum – taking place in Paris on May 13 -14, 2025 – will identify and explore strategies for accelerating project development timelines, as it unites African energy ministries, regulators and national oil companies with leading private sector players to sign new deals and drive projects forward.
Leveraging Local Content and Expertise
One of the challenges in Africa’s oil and gas sector is reliance on foreign expertise, which can cause delays due to logistical challenges and the need for expatriate work permits. By investing in the development of local talent and utilizing local content, companies can reduce their dependence on foreign labor and materials. This not only shortens timelines, but also strengthens local economies and builds capacity within host countries. Establishing partnerships with local educational institutions to train engineers, geologists and project managers can create a skilled workforce capable of driving project development forward. In July 2024, shareholders of the $5-billion East African Crude Oil Pipeline (EACOP) signed an MOU with Makerere University in Kampala to support knowledge and capacity building among Ugandan recent graduates and technicians, offering training and work exposure with EACOP’s suppliers and contractors. Nigeria has also prioritized collaboration on STEM education initiatives and infrastructure development through its Nigerian Content Development and Monitoring Board, while The Gambia has outlined a local content policy that facilitates partnership between public and corporate entities to promote local investment and employment opportunities.
Streamlining Regulatory Processes
Regulatory approval processes can often be protracted, causing delays in project timelines. Streamlining these processes to eliminate unnecessary bureaucratic bottlenecks, implementing clear and transparent regulatory frameworks, setting definitive timelines for approvals and adopting digital platforms for faster communication between regulators and companies can significantly reduce delays. Governments can also explore the creation of one-stop regulatory agencies that consolidate multiple approval processes under a single roof, thereby minimizing the time to navigate through different regulatory bodies. Equatorial Guinea has established a one-stop stop that enables investors to set up a business in one week, while South Africa’s “InvestSA” platform serves to facilitate investment, fast-track projects and reduce government red-tape. Earlier this year, Angola implemented a one-stop shop for local content compliance in the oil and gas industry, enhancing transparency and policy implementation across the sector.
Enhancing Public-Private Partnerships
Public-private partnerships (PPPs) can play a vital role in accelerating project timelines by sharing risks, resources and expertise. Governments can encourage PPPs by offering incentives such as tax breaks, reduced royalties or fast-tracked approvals for projects that involve significant private sector investment. Additionally, fostering a collaborative environment where both parties can openly discuss challenges and solutions can lead to more efficient project execution. PPPs are particularly effective in infrastructure development, where private companies can bring in advanced technology and expertise to expedite construction and operational phases.
Investing in Infrastructure and Technology
Infrastructure limitations, such as inadequate transportation networks and insufficient power supply, are common causes of delays in project development across the continent. Investing in the necessary infrastructure, either independently or through partnerships with local governments, can remove these barriers. Additionally, adopting the latest technology in exploration, drilling and production can significantly reduce the time required for each phase of a project. Technologies such as 3D seismic imaging, automated drilling systems and digital twins can improve accuracy, reduce errors and streamline operations, leading to faster project completion.
Ensuring Financial Preparedness
Financial delays are a major risk to project timelines, particularly given the capital-intensive nature of the oil and gas industry. This requires that companies secure the necessary funding before launching large-scale projects – not only obtaining financing from traditional banks and lending sources, but also exploring alternative funding mechanisms like sovereign wealth funds, development finance institutions and bond markets. In June 2024, Australia’s Invictus Energy raised $10 million for development of the Cabora Bassa oil and gas project in Zimbabwe from a local private equity firm and the country’s sovereign wealth fund. A robust financial plan that includes contingency funds can help mitigate risks and ensure that projects continue to move forward even in the face of unforeseen financial challenges.
IAE 2025 is an exclusive forum designed to facilitate investment between African energy markets and global investors. Taking place May 13-14, 2025 in Paris, the event offers delegates two days of intensive engagement with industry experts, project developers, investors and policymakers. For more information, please visit www.invest-africa-energy.com. To sponsor or participate as a delegate, please contact sales@energycapitalpower.com.
