Africa’s new producers struggle for financing
IOCs and Western lenders are reluctant to commit to new oil and gas projects in African frontier countries
Africa’s frontier oil and gas countries are crying foul as they struggle to raise money to exploit newly discovered resources due to IOCs’ selectiveness over where they commit funding despite dialling down their green ambitions and boosting capex on fossil fuels. Senegal, Namibia and Sierra Leone are some of the new entrants to the oil and gas sector that are facing financing difficulties, with IOCs focusing on share buybacks and paying high dividends as Western lenders and development banks shun fossil fuel investments. Senegal, which started pumping oil for the first time in 2024 from the Sangomar field—operated by Australia’s Woodside Energy—has yet to reach FID on the Yakaar-Teranga gas
Also in this section
16 June 2025
The launch of the much-needed yet oft-delayed Africa Energy Bank remains shrouded in questions and funding constraints, but its potential is clear
16 June 2025
BP and partners have reached a $2.9b FID on a new phase at Shah Deniz, but slow progress on other gas projects is attributed to a lack of European support
13 June 2025
The two oil heavyweights’ diverging fiscal considerations are straining unity within the group
13 June 2025
US policies may have lasting effects in sectors such as energy, that rely on predictable rules and long-term planning
