- The IEA expects Africa’s energy investment to reach $110 billion in 2026, with Nigeria remaining one of the continent’s largest investment destinations.
- Clean energy, power generation and critical minerals are attracting growing investor interest, although fossil fuels still dominate spending.
The International Energy Agency (IEA) has projected that Africa’s total energy investment will reach $110 billion in 2026, with Nigeria remaining one of the continent’s leading investment destinations despite a prolonged decline in upstream spending.
The agency disclosed this in its World Energy Investment 2026 report. The report stated that Africa continues to attract only 3.3 per cent of global energy investment, despite accounting for about 20 per cent of the world’s population.
The IEA noted that fossil fuels still account for the largest share of energy investment across the continent. However, investors are increasingly directing capital towards electricity generation, critical minerals and transport electrification as African countries diversify their energy systems and strengthen energy security.
The report identified Nigeria, Algeria, Angola, Egypt and Libya as Africa’s largest energy investment destinations, accounting for approximately 70 per cent of total investment on the continent.
However, the agency said investment across these five countries has fallen sharply over the past decade. Annual investment declined from $50 billion in 2016 to $25 billion in 2025 as upstream oil and gas spending weakened. The IEA reported that total upstream investment across Africa reached $37 billion in 2025, compared with $68 billion in 2016.
Despite the decline, the agency expects upstream oil and gas investment in sub-Saharan Africa to rebound by 12 per cent to nearly $24 billion in 2026 after falling by 18 per cent in 2025. The report identified Nigeria as one of the principal beneficiaries of the expected recovery, supported by ongoing liquefied natural gas (LNG) developments and offshore oil projects.
The IEA said Nigeria and Mozambique continue to advance LNG projects with support from international oil companies and indigenous operators, while Nigeria is also progressing major deepwater developments in partnership with global energy companies.
The report also highlighted growing investor interest in emerging energy producers, including Mozambique, Namibia, Senegal and Uganda, where investment has increased steadily since 2016 as companies pursue new exploration and production opportunities.
Beyond oil and gas, the IEA reported that investment in Africa’s critical minerals sector reached $10 billion in 2024.
However, the agency said limited infrastructure, unreliable electricity supply and inadequate water resources continue to restrict refining capacity and downstream mineral processing across the continent, preventing many countries from capturing greater economic value from their mineral resources.
The report also identified Africa’s persistent energy access challenge.
According to the IEA, about 590 million people across the continent still lack access to electricity, while nearly one billion people do not have access to clean cooking solutions. The agency said African countries must significantly increase investment in electricity networks, renewable energy infrastructure and clean cooking technologies to meet development goals and expand energy access.
The IEA also identified encouraging progress in transport electrification, particularly in East Africa, where government incentives and growing investment by Asian electric vehicle manufacturers continue to accelerate electric mobility adoption.
Globally, the report projected total energy investment to reach a record $3.4 trillion in 2026 despite geopolitical uncertainty.
The agency expects investors to direct approximately $2.2 trillion of that total towards clean energy technologies, electricity networks, battery storage, energy efficiency and electrification, almost twice the amount expected to flow into fossil fuel investments.
The IEA concluded that Africa can attract a greater share of global clean energy investment by improving access to affordable financing, expanding critical infrastructure and implementing policies that encourage long-term private sector investment.