Resources Sector in Africa
What you need to know about the resources sector in Africa
The resources sector is a cornerstone of Africa’s economy, contributing significantly to GDP, exports, and government revenues. This diverse sector encompasses oil, gas, minerals, and renewable energy sources, making Africa a key player in the global resource landscape. In 2023, Africa’s oil production reached approximately 341.5 million metric tons, with Nigeria, Algeria, Libya, and Angola leading the output. Simultaneously, Africa’s proven natural gas reserves totaled over 17.89 trillion standard cubic meters, with Nigeria, Algeria, and Egypt commanding the largest shares.
Beyond hydrocarbons, Africa is rich in critical minerals, including cobalt, lithium, and copper key components for renewable energy and battery technologies. Countries like the Democratic Republic of Congo (cobalt), Zambia (copper), and South Africa (platinum and gold) are central to global supply chains for these resources. Meanwhile, renewable energy projects are gaining momentum, with substantial investments in solar, wind, and geothermal energy in countries such as Kenya, South Africa, and Morocco.
Emerging markets are transforming Africa’s resource landscape. Senegal began offshore oil production in 2024, while Namibia is developing significant offshore oil reserves projected to produce 700,000 barrels per day by 2030. Uganda is advancing its East African Crude Oil Pipeline project, expected to produce 230,000 barrels per day by 2027, alongside investments in mineral resources like gold and rare earths.
The sector employs millions across its value chains, fostering economic growth and infrastructure development. However, challenges persist, including fluctuating global commodity prices, underdeveloped infrastructure, regulatory hurdles, and geopolitical instability. Despite these hurdles, Africa’s resource sector remains a dynamic hub for investment, innovation, and sustainable growth opportunities.
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Spotlight Countries
To highlight the potential within Africa’s resource sector, three countries stand out due to their promising growth prospects:
Nigeria
Nigeria remains Africa’s largest oil producer, with hydrocarbons contributing approximately 5.5% to GDP in 2023. The country also boasts Africa’s largest natural gas reserves (5.94 trillion standard cubic meters) and significant deposits of minerals such as tin, limestone, and coal. Recent reforms like the Petroleum Industry Act (PIA) aim to enhance efficiency, attract foreign investment, and diversify the resource sector.
Democratic Republic of Congo (DRC)
The Democratic Republic of Congo is the world’s largest cobalt producer, accounting for approximately 74% of global supply in 2023, with an estimated output of 170,000 metric tons. It also possesses significant reserves of copper, gold, and diamonds. With increasing global demand for electric vehicles and renewable energy storage, the DRC is poised to play a critical role in the global energy transition.
South Africa
South Africa is a powerhouse in the global mining industry, leading in the production of platinum group metals, manganese, and gold. The country also leads in renewable energy, with robust investments in solar and wind power. The government is implementing policies to modernize mining operations and support the energy transition, positioning South Africa as a leader in both traditional and renewable resources.
FAQs about the Resources sector in Africa
Africa offers vast opportunities in oil, gas, critical minerals, and renewable energy. Key areas for investment include offshore exploration, natural gas production, battery mineral mining (e.g., cobalt, lithium), and renewable energy infrastructure like solar farms and wind turbines. Emerging markets like Senegal, Namibia, and Uganda also provide untapped potential for new players and technologies.
Sustainability is being prioritized through investments in cleaner energy technologies, such as carbon capture, storage, and renewable energy projects. Many African nations are also promoting local beneficiation of minerals and exploring natural gas as a transitional fuel. Policies supporting environmental conservation and local content development are gaining traction.
The sector is a vital contributor to Africa’s GDP, accounting for significant export revenues and government income. It supports millions of jobs across exploration, production, and distribution, while driving infrastructure development and foreign direct investment. As energy demand grows, the sector remains pivotal in powering Africa’s industrialization and economic diversification efforts.
For hydrocarbons, Nigeria, Algeria, and Angola are leaders in oil and natural gas production. In mining, the DRC dominates cobalt, Zambia is key for copper, and South Africa leads in platinum, gold, and manganese. Emerging players like Namibia and Uganda are also gaining prominence in the resource landscape.
The sector’s future is promising, with growth expected in both traditional and renewable resources. Natural gas and battery minerals will drive exports, while renewable energy adoption is accelerating. Strategic reforms, technological advancements, and international partnerships will shape the sector's evolution, positioning Africa as a leader in the global energy transition.