Keypoints:
- Africa underusing vast gas reserves
- Policy delays and weak infrastructure
- Report urges African-led investment
AFRICA is yet to convert its vast natural gas reserves into meaningful economic gains, despite decades of discovery and exploration, according to the 2025 Gas for Africa Report released by Hawilti and the International Gas Union (IGU). The report finds that the continent holds more than 8 percent of the world’s proven gas reserves but contributes only around 6 percent of global production and consumption. Gas demand across Africa has remained ‘largely stagnant for forty years’, underscoring the slow progress in developing the sector.
Industry leaders call for shift to delivery
Africa Finance Corporation (AFC) President and CEO Samaila Zubairu said the findings highlight the growing gap between what Africa has and what it manages to deploy. In the report’s foreword, he argued that natural gas must now move ‘from potential to performance’, stressing its role in industrialisation, clean cooking access, and regional energy trade.
He added that African financiers are increasingly ‘taking the lead in shaping, financing, and delivering the infrastructure’ needed to unlock gas value chains. According to Zubairu, this shift towards African-led capital is essential to overcome delays caused by dependence on external financing.
Underused reserves and missed industrial opportunities
IGU President Andrea Stegher warned that Africa’s gas reserves remain ‘underleveraged’ at a critical moment for the continent’s economic future. He said gas could support ‘economic resilience, cleaner power generation and industrial development’ if backed by stable, pragmatic policies.
The report notes that Africa’s energy challenge goes beyond electricity deficits. Millions of people still lack access to clean cooking fuels, while industries continue to rely heavily on diesel. The authors argue that gas offers a practical and competitive route to expand local manufacturing, cut fuel imports, and improve energy security.
Infrastructure bottlenecks slowing progress
Several major discoveries in recent years — including in Mozambique, Tanzania, Senegal, and Mauritania — have expanded Africa’s gas frontiers. Yet domestic utilisation remains limited due to slow-moving infrastructure projects, inadequate processing capacity, and regulatory uncertainty.
The report presents several case studies as proof that targeted investment can accelerate progress. These include ROMPCO’s South Africa–Mozambique cross-border pipeline, Seplat Energy’s approach to eliminating gas flaring in Nigeria, and new compressed natural gas transport systems gaining ground in Nigeria and Tanzania. Hawilti and the IGU say these examples illustrate scalable models for building local markets.
Push for regional integration and flexible infrastructure
The authors stress that Africa must prioritise future-proof infrastructure, stronger regional cooperation, and African-led financing strategies to unlock its true gas potential. Without swift policy reforms and investment decisions, they warn, the continent risks entrenching energy poverty despite its vast resources.
With Africa’s population projected to grow by one bn people by 2050, the report argues that gas could play a decisive role in supporting industrial growth and resilient economies — if governments take coordinated action now.
