New Oil And Gas Discoveries Signal Economic Boom For Sub-saharan Africa

Newly discovered oil and gas reserves in Sub-Saharan Africa are set to reshape the economic landscape of the region, providing a substantial boost to fiscal revenues and foreign currency earnings.

This optimistic outlook comes from a recent study by Moodys Investor Services, which highlights the increased exploration and investment activities by both established and new players in the hydrocarbon sector.

South Africa stands on the cusp of reaping the benefits from these developments. However, analysts caution that the Government of National Unity GNU led by President Cyril Ramaphosa must act swiftly to incentivise investors to re-enter the sector.

While Shell Offshore Upstream South Africa said in July that its plans to drill five wells off the West Coast will be game-changing for, TotalEnergies confirmed exiting SA offshore of Mossel Bay following a decision to exit the fields by another partners in the project, Canadian Natural Resources International CNRI and QatarEnergy International.

Nonetheless, Moodys noted this week that the emergence of new hydrocarbon producers across Sub-Saharan Africa will allow for improvements in fiscal revenue and foreign-currency generation.