The African Energy Commission (AFREC) launched its Eastern Africa Regional Oil and Gas Market Report at the 2025 Africa Oil Week (AOW) in Accra, Ghana. This launch highlights AFREC’s commitment to accelerating regional energy integration, sustainable development, and intra-African trade. The event brought together ministers, CEOs, and global energy leaders, where AFREC Executive Director Rashid Ali Abdallah advocated for a unified energy approach founded on “strong leadership, regional cooperation, and collective ambition.” Unveiled at the Ministerial and CEO Forum, this report is the first of five regional studies. Its purpose is to assist African Union member states in transforming their resource potential into well-organised, inclusive markets. The report’s release is particularly timely, given the global shift towards low-carbon energy. Africa, despite its rich hydrocarbon reserves, faces energy poverty, necessitating coordinated strategies that balance resource utilisation with environmental sustainability.

Bridging resource wealth and energy poverty

Africa faces a significant energy paradox: despite possessing over 125 billion barrels of oil, 18 trillion cubic metres of gas, and nearly 40% of global renewable energy potential, more than 600 million Africans lack electricity. AFREC’s report proposes that regional integration is the key to resolving this critical development challenge. This involves harmonising energy regulations, establishing cross-border pipelines, investing in refining and distribution infrastructure, and utilising trade frameworks like the African Continental Free Trade Area (AfCFTA) to ensure equitable distribution of resource-based growth benefits. Eastern Africa possesses significant, newly discovered oil and gas reserves in Mozambique, Tanzania, Uganda, and Kenya, with further potential in Somalia and Ethiopia. However, the absence of shared infrastructure and insufficient refining capabilities hinder the conversion of these reserves into cost-effective domestic energy. AFREC’s analysis indicates that collaborative regional planning could prevent redundancy, decrease expenses, and enhance market stability against external disruptions. This approach aligns perfectly with the broader economic integration objectives of the AfCFTA.

Aligning energy markets with the AfCFTA vision

A key strength of the report is its direct connection between energy security and trade liberalisation. AFREC promotes cross-border energy corridors and consistent policies to facilitate the flow of petroleum products and natural gas within the AfCFTA framework. This could manifest as shared pipeline ownership, collaborative refining projects, or regional gas trading hubs, all aimed at stabilising supply and pricing. The proposed East African Crude Oil Pipeline (EACOP), connecting Uganda and Tanzania, exemplifies cross-border cooperation in the energy sector, despite environmental concerns. AFREC’s report advocates for hydrocarbon investment while emphasising stringent methane mitigation, environmental oversight, and local beneficiation to ensure community benefits alongside corporate profits.

Energy integration as a development multiplier

AFREC’s Eastern Africa report highlights the strategic role of oil and gas as transitional assets. Revenues generated from these resources can be leveraged to fund electrification projects, develop industrial capabilities, and stimulate investments in renewable energy. The report specifically stresses that by directing hydrocarbon revenues towards infrastructure development and human capital, countries can achieve long-term resilience. This approach is especially crucial for nations such as Kenya and Ethiopia, where the expansion of renewable grids and gas-to-power systems could facilitate regional electricity trade. AFREC actively participated in AOW sessions, joining discussions on methane mitigation, cross-border product exchange, and funding local content. This demonstrates a comprehensive approach to governing sustainable energy. Mr. Abdallah emphasised that the forum aimed to transform vision into action through trust, collaboration, and inclusivity, ensuring that energy advancements benefit African communities, not solely corporate profits.

Building momentum through

partnerships

AFREC engaged in key strategic meetings with Ghana’s Ministry of Energy and Green Transition, the World Bank, Shell International, and the Environmental Defense Fund (EDF) during the AOW. These discussions highlighted AFREC’s commitment to its dual mission: assisting AU Member States in developing effective energy policies and fostering collaboration among public bodies, private investors, and development partners. AFREC’s strategy emulates successful regional models, such as the West African Power Pool (WAPP), which links the electricity grids of 14 nations. Duplicating this collaborative approach in the oil and gas industry could enable Eastern Africa to establish a unified market, thereby attracting investment, standardising regulations, and decreasing reliance on imports.

The road ahead: Integration, sustainability, and sovereignty

The Eastern Africa Oil and Gas Market Report serves as a strategic call for unity, extending beyond a mere technical document. It underscores AFREC’s overarching goal for a sovereign, secure, and sustainable energy future for Africa, highlighted through its focus on shared infrastructure, environmental protection, and local empowerment. Realising this potential, however, hinges on political commitment. Effective implementation of the report’s recommendations, harmonising cross-border regulations, attracting investment, and guaranteeing fair distribution of benefits, will demand extensive inter-state cooperation. If successful, this approach could transform how Africa utilises its energy resources, shifting from a fragmented collection of national interests to a unified force driving continental prosperity. By launching this report at one of Africa’s premier energy forums, AFREC has prominently positioned Eastern Africa in discussions about regional integration. This action underscores the belief that Africa’s energy future and economic sovereignty will be determined not just by abundant resources, but by the unified and purposeful way these resources are utilised.

Written by: 

By Sesona Mdlokovana

Associate at BRICS+ Consulting Group 

Chinese & Middle Eastern Specialist

** MORE ARTICLES ON OUR WEBSITE https://bricscg.com/

** Follow https://x.com/brics_daily on X/Twitter for daily BRICS+ updates

Source link