SA facing oil and gas challenges amid surge in global Africa investment

African countries overhaul energy and gas regulations to attract investors, SA remains a laggard

- EDWARD WEST

THE stage at the opening of the African Energy Week for 2025 that was held in Cape Town. Many African countries have reported an increase in investment and a surge in development of their oil and gas sectors.

(EDWARD WEST)

MANY African countries have overhauled their oil and gas regulatory and policy frameworks to make it easier for international companies to operate, explore and obtain production licenses, but South Africa remains a laggard.

This emerged on Monday, during the first day of the African Energy Week conference that was being held in Cape Town, where even the opening dancers were singing "drill, baby, drill", words that only two years ago might have seemed an anathema to energy conferences, because the focus then was on decarbonisation and the renewable energy transition.

With renewable energy now seemingly at the tail-end of delegate discussions, Kosmos chief executive Andrew Inglis pointed out that oil and gas resources are key to energy security for countries, and the International Energy Agency had recently stated that global oil and gas investment is projected to reach $570 billion in 2025 to meet growing demand, and that fully 90% of that amount would be needed just to make up for the natural decline of existing oil reserves.