By Viren Sookhun, Managing Director: Workforce Staffing Africa and Middle East
Global volatility has created gaps in the supply of oil to the world, which is a massive opportunity for Africa to step forward. Several countries on the continent have notable reserves of oil and gas, but up until now, there have been significant delays in leveraging them. The current crisis is providing the impetus needed to accelerate production, and many ventures are ramping up their operations.
The oil crisis is also increasing demand for minerals essential in the global energy transition, such as cobalt, nickel, copper and lithium, as well as for renewable energy solutions. With its abundant natural resources, advantageous geographic position and emerging infrastructure corridors, Africa is well positioned to respond to this demand and become a central player on the global stage. The question is whether it can coordinate effectively, create the right policy environment and mobilise the skills required to turn this opportunity into sustained economic growth.
Accelerating African production
Recent global disruptions have caused oil and gas supply challenges across the world, which means Africa’s time has come. Several projects that had been stalled or delayed are now underway. Countries such as Namibia, Mozambique and Tanzania are moving forward with production plans, while Nigeria and Angola continue to expand their output. In East Africa, developments in the Rovuma Basin are regaining momentum, and Uganda will soon begin to export oil through the East African Crude Oil Pipeline to the Tanzanian coast.
The challenge for Africa has never been the availability of resources – the continent has these in abundance. However, development of the infrastructure required to extract, transport and distribute these resources has been stalled. The urgency of global demand has become the catalyst the continent needs to bring these resources into production faster and more efficiently. Now, the focus must shift to effectively coordinating the development of infrastructure, investment and policy to ensure projects do not experience further delays.
Seeing the bigger picture
Beyond simply plugging the gap in global oil supply, increasing production has a broader economic impact, creating jobs, developing skills and stimulating local economies. As more people are employed and gain experience, this contributes to wider economic growth. With alignment between governments, industry and investors, Africa has the opportunity to strengthen its competitiveness and move beyond its position as an emerging economy.
In addition, while oil and gas will help address immediate supply needs, there is also an ongoing opportunity in mining the materials required for the energy transition. Demand for minerals such as copper, cobalt, lithium and nickel is increasing as industries shift toward electric vehicles and battery technologies, and Africa holds significant reserves of these materials, particularly across the Copperbelt and surrounding regions. At the same time, the continent is well-positioned for renewable energy development, with strong solar and wind resources and the potential for projects such as green hydrogen.
Unlocking regional trade and growth
Africa’s ability to capitalise on these opportunities will require significant upgrades to infrastructure. Key routes like the Lobito Corridor, Walvis Bay Corridor and routes linking East Africa to global markets can connect resource-rich regions to ports and international trade pathways, but they need further development, investment and coordination to reach full potential. Improved rail, road and port infrastructure will allow countries to move resources more efficiently, reduce costs and increase export capacity. With the right infrastructure in place, Africa can strengthen its position in global supply chains and improve access to both Western and Eastern markets.
Skills and collaboration for long-term success
In addition to infrastructure development, sustainable economic growth will need cross-skilling, reskilling and structured knowledge transfer to build local capability. Skilled expatriates will continue to play a role in the short term, but the focus must be on transferring knowledge and developing sustainable local expertise. At the same time, attracting investment is essential. Investment not only unlocks capital, but it also brings technology, experience and exposure to global best practice. This must be managed in a way that supports localisation and long-term skills development. Most importantly, there needs to be greater collaboration across the continent. Countries cannot operate in isolation if they are to compete globally. Aligning strategies, sharing resources and coordinating development efforts will be key.
A defining moment for Africa
Africa is in a stronger position than it has ever been, with demand, resource availability and changing global supply chains creating a real opportunity for growth. How well the continent can take advantage of this position will depend on how effectively projects are brought into production and how well countries can to align on policy, investment and infrastructure. If governments, industry and investors can take decisive action and the right focus is placed on infrastructure and skills development, Africa is well positioned to become a central part of global energy and resource supply.
