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Africa Still Wasting Its Gas Wealth, New Report Warns as Local Financiers Step Up

Africa Still Wasting Its Gas Wealth, New Report Warns as Local Financiers Step Up
Tuesday, 25 November 2025 10:55
  • The 2025 Gas for Africa Report released by Hawilti and the International Gas Union (IGU) was made public on Monday, November 24, 2025.
  • Africa holds 8% of global proven gas reserves but accounts for only 6% of production.
  • The research shows the demand has remained stagnant for four decades despite significant discoveries.

Africa continues to underuse its vast natural gas resources despite decades of discoveries, according to the 2025 Gas for Africa Report released by Hawilti and the International Gas Union (IGU). The study notes that although the continent holds over 8% of the world’s proven gas reserves, it remains a marginal producer and consumer, responsible for only 6% of global output, with demand “largely stagnant for forty years.”

AFC President and CEO Samaila Zubairu said the findings highlight a crucial gap between potential and performance. “Africa’s gas story must now move from potential to performance,” he said in the foreword, arguing that natural gas is essential not only for cleaner power but also for industrialisation, modern cooking solutions, and regional trade. He added that African financiers are increasingly “taking the lead in shaping, financing, and delivering the infrastructure” required to unlock the resource.

The report stresses that Africa’s energy challenge extends beyond electricity, noting that millions still lack access to clean cooking fuels and that industries rely heavily on diesel. It argues that gas offers a competitive pathway to expand local manufacturing, strengthen energy security, and reduce dependence on imported fuels. IGU President Andrea Stegher said the continent’s vast reserves remain “underleveraged,” noting that gas can underpin “economic resilience, cleaner power generation and industrial development” if supported by pragmatic policies.

According to the study, discoveries in Senegal, Mauritania, Mozambique, and Tanzania have expanded Africa’s gas frontiers, but infrastructure bottlenecks and slow policy reforms continue to limit domestic utilisation. It highlights case studies, including ROMPCO’s cross-border pipeline, Seplat Energy’s flare elimination model, and CNG transport systems in Nigeria and Tanzania, as examples of how targeted investments could scale local gas markets.

The authors conclude that Africa must prioritise flexible, future-proof infrastructure, regional integration, and African-led financing to unlock its gas potential. Without decisive action, they warn, the continent risks remaining energy-poor despite abundant resources, even as its population is projected to grow by one billion people by 2050.

By Cynthia Ebot Takang

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