The global transition to a low-carbon economy has led to increased scrutiny of coal with many industrialized nations citing its significant environmental and health impacts as a primary concern.
The African Energy Chamber (AEC) – the voice of the African Energy sector – is championing coal as a vital part of Africa’s energy mix. Speaking at Southern Africa Oil & Gas Conference 2025 - organized by the South African Oil & Gas Alliance (SAOGA) - NJ Ayuk, Executive Chairman of the African Energy Chamber, highlighted that coal could not be abandoned as it provides a pathway to economic growth and energy security. The AEC is a Strategic Partner of SAOGA 2025.
“We should never apologize for harnessing our fossil fuel resources to drive growth and improve lives. We need to finance coal and unlock its potential for Africa's benefit. Dig baby dig!” he said.
He highlighted that while some may advocate for a rapid transition to renewables, it is important to understand and recognize that Africa's energy needs are unique. “Our continent requires a balanced approach that incorporates all energy sources including fossil fuels. The recent developments in Libya and Algeria, which are sending more gas to Europe than ever before, demonstrate the importance of our oil and gas resources,” he noted.
Meanwhile, new producers are emerging across Africa and projects like the East African Crude Oil Pipeline will come online soon. The 1,443Km pipeline will be a game-changing infrastructure project for East Africa – enabling the transportation of 246,000 barrels of crude oil per day and positioning the region for increased participation in the global energy market.
“The Grand Tortue Ahmeyim project in Mauritania and Senegal is another example of Africa's burgeoning energy sector. Southern Africa in particular holds real potential. With an estimated 6.7 million barrels of oil produced daily and an expected additional 2 million barrels per day in the next five years, the continent is set to become an increasingly important player in the global energy landscape, with Southern Africa's oil production growth driving economic development and investment opportunities.”
He pointed out that oil and gas discoveries in Africa do not automatically translate to production, highlighting that the industry requires finance to get moving together with infrastructure development and policy support.
He cited the recent funding from the U.S. to Mozambique as a welcome step in this direction. The U.S. Export-Import Bank re-approved its $4.7 billion loan for the Mozambique LNG project this month – a decision that provides a much-needed boost to one of the continent’s most significant energy investments. Mozambique's natural gas reserves are substantial, with approximately 65 trillion cubic feet of recoverable gas. The Mozambique LNG Project, led by TotalEnergies, has the potential to stimulate the Mozambican economy and provide a key source of natural gas to meet growing energy demands in Asia and other international markets.
“The recent funding from the U.S. to Mozambique is a welcome step and we expect this to pave the way for similar projects on the continent,” he said.
Meanwhile, Ayuk highlighted that Africa's energy sector must prioritize competitiveness and local content to remain viable in the global market. "We are not competing with neighboring countries; we're competing with emerging energy players like Guyana and Suriname. To attract investment and drive growth we need to create an enabling environment that encourages companies to invest in Africa and promotes local content, which in turn will generate opportunities for our citizens."
He also addressed the double standards surrounding natural gas has globally, pointing out that it is unacceptable that natural gas is considered ‘green’ in Europe but not in Africa. “We must challenge these double standards and ensure that our energy sector receives the support it deserves.”
In conclusion, Ayuk encouraged SAOGA and all stakeholders to continue advocating for Africa's energy interests. “We must never apologize for harnessing our fossil fuel resources to drive growth, improve lives and create a brighter future for Africa.”
