AEC, S&P Global Launch 2027 Africa State of the Energy Outlook Report at AEW

The African Energy Chamber (AEC) and market intelligence firm S&P Global - and powered by S&P Global Energy data - have launched the AEC: State of African Energy 2027 Outlook report today during African Energy Week (AEW) 2026 in Cape Town.

Designed to provide data-driven market intelligence for investors, policymakers and project developers across the entire value chain, the report outlines market trends, policy reforms, and investment avenues shaping the continent’s energy future. The launch comes at a pivotal moment, as shifting global geopolitics and supply chain realignments redirect capital flows and elevate Africa’s energy assets on the global stage.

“What the report is meant to do is to highlight trends in the sector going forward to help with planning and ensure the use of data to see what is happening and coming from upstream to downstream, critical minerals and data centers,” stated Verner Ayukegba, Senior Vice President at the African Energy Chamber (AEC).

Expanding on the macroeconomic climate, Kyle DiPietrantonio, International Energy Fellow at the AEC, noted that geopolitical shifts and technological expansion are helping fuel an estimated 3.9% economic growth rate across Africa between 2026 and 2027.

"Growth is being driven by new frontiers and the digital space. On a macro level, Africa’s direct reliance on the GCC region is limited to around 10%, buffering it from deeper regional shocks despite ongoing risks around the Strait of Hormuz," he stated.

However, he highlighted Africa’s reliance on energy imports from global markets as a weak point for its growth.

Examining the upstream landscape, Justin Cochrane, Director and Head of Africa Research at S&P Global, detailed a resurgence in deepwater exploration led by International Oil Companies (IOCs).

“Since 2024 we have seen more deepwater presence by IOCs. Between 2025 and 2026, over 50% of global acreage globally was in Africa by global IOCs,” stated Cochrane. He observed that these capital commitments remain concentrated in liquid-rich basins, noting, “Where the guys are entering is mainly the west and southern Africa and not much in east cost because the west coast is liquid prime and the east is gas prime.”

Cochrane emphasized that global explorers are increasingly targeting high-impact frontier blocks across the continent. “Explorers are moving into greenfield where they are looking for big discoveries. The point is Africa offers something unique and to tap super giant discoveries. What we are going to see moving forward is the acreage capture will turn into seismic and then into drilling.”

Detailing dynamics in the gas market, Simon Wood, Executive Director at S&P Global, explained how Africa’s geopolitical stability relative to other global transit bottlenecks is attracting new capital. “Africa is not exposed to Hormuz and American politics hence frontier investors are turning to Africa. Africa is providing a blueprint to monetize stranded gas.”

Turning to power sector dynamics and critical minerals, Rehan Burger, Associate Director at S&P Global, underscored the capital deficit facing Africa’s power grid alongside widespread regulatory reforms. “We have only 2% of global investment into power. There is significant investment needed for energy access in Africa with demand set to double by 2050 and we will need 370kwh per person,” he stated