African Petroleum Producers Organization (APPO) is promoting the development of regional energy hubs across the continent, aiming to remove trade barriers and strengthen infrastructure interconnections ― from pipelines to refining and distribution networks, Farid Ghezali, APPO secretary-general, said.
Africa has vast petroleum reserves, with proven crude oil reserves estimated at over 125 billion barrels, and natural gas reserves estimated at around 620 trillion cubic feet (Tcf), or over 18 trillion cubic metres (Tcm). The continent holds approximately 7–9 percent of the world’s proven oil reserves, and about 7–8 percent of the global natural gas.
Proven oil reserves by key countries 2025/2026 estimates show that Libya tops with 48.4–50 billion barrels (bbl), followed by Nigeria with 36.9bbl. Algeria is third with 12.2bbl, Angola is next with 7.8bbl, Sudan, from where South Sudan was carved out in July 2011, holds 5–8.75bbl combined with South Sudan. Egypt comes with 3.3bbl to close the continent’s top six key oil countries.
Ghezali, speaking at Invest in African Energy (IAE) 2026 in Paris, said the initiative (of pushing the regional energy hubs) is central to repositioning Africa in the global energy system. The strategy signals a structural shift for investors: away from fragmented national markets toward a unified, high-growth regional bloc of 1.4 billion people, he added.
“For investors, this changes everything. You are no longer investing in isolated national markets, but in an integrated regional market with scale, demand growth and long-term potential,” Ghezali said.
According to Investing.com total energy investment in Africa reached approximately $105 billion in 2025, while the continent’s overall energy sector represents a massive, growing market, including $43 billion in expected capital expenditure.
Ghazali framed the push for integration as a response to a rapidly shifting global energy landscape marked by volatility and geopolitical uncertainty. “Recent events have shown that energy security is not just about supply ― it is about reliability and resilience,” he noted.
“The world is looking for diversification and stability. Africa can offer both ― but only if we organize ourselves as a connected and competitive energy market,” he added. A key part of APPO’s vision is addressing the continent’s infrastructure gap. Data from Ecofin Agency say the Africa infrastructure gap is the estimated at between $68 billion to $170 billion annual funding shortfall needed to build and maintain essential energy, transport,
water, and digital systems for development. This massive deficit limits economic growth by up to two percentage points annually, creating a massive opportunity for investment.
In particular, the African Development Bank notes that while $130-$170 billion is needed annually, funding is significantly lower. For instance, despite holding more than 600 trillion cubic feet of proven gas reserves, Africa
continues to face constraints in monetizing its resources. “Resources in the ground are not enough. We need pipelines, LNG facilities, processing infrastructure – real assets that connect supply to demand,” Ghezali noted.
He emphasized that Africa must move beyond short-term, transactional energy deals, particularly in its engagement with Europe. “We cannot remain in the logic of short-term transactions. We need long-term partnerships that justify large-scale investments and create stability for both producers and buyers,” Ghezali noted.
Financing remains a hurdle, especially as traditional capital sources become more cautious under ESG pressures. However, short-cycle exploration, near-field developments and optimization of existing assets offer immediate value, as recent successes in Namibia, MSGBC countries and Ivory Coast have shown.
To support more projects, APPO has backed the creation of the African Energy Bank. At the same time, investors’ preferences are shifting toward integrated energy projects that combine upstream development with domestic power generation or LPG production. “The most attractive projects today are those that deliver both financial returns and development impact. Gas-to-power projects respond to both energy security and
sustainability,” Ghazali said.
He emphasised the need to boost intra-African energy trade. “We produce oil and gas, yet we import refined products. This must change. Regional integration is the only path to a competitive and self-sufficient energy market,” he added.
