A new report has raised fresh concerns over Africa’s oil and gas industry, warning that decades of fossil fuel extraction have largely failed to deliver meaningful economic development for most African countries, while instead enriching multinational corporations and a small political elite.
The report, titled “Pipe Dreams: How Oil and Gas Fail to Deliver Economic Development in Africa,” was published on May 8 in Nairobi, Kenya, by Oil Change International in collaboration with Power Shift Africa. It examined 13 oil- and gas-producing African nations and concluded that the continent’s resource wealth has not translated into broad-based prosperity.
According to the findings, fossil fuel extraction has created minimal jobs and limited public revenue, while exposing African economies to global price volatility, environmental degradation, and rising debt risks. The report argues that oil wealth has largely concentrated in the hands of multinational corporations and political elites, while local communities continue to suffer from pollution, lost livelihoods, and increasing living costs.
Africa director at Oil Change International, Thuli Makama, said oil and gas have not delivered sustainable development for the continent and are unlikely to do so in the future. She noted that the current model benefits a few while leaving the majority of citizens behind.
The report highlights how oil spills and gas extraction have damaged farming and fishing communities, while also locking many countries into boom-and-bust economic cycles tied to fluctuating global energy prices.
It further warns that emerging producers such as Uganda, Mozambique, Namibia, Tanzania, the Democratic Republic of the Congo, and Côte d’Ivoire risk accumulating “stranded assets” and heavy debt burdens if global demand for fossil fuels declines in the coming years.
Critics of continued fossil fuel expansion argue that Africa should instead focus on renewable energy as a more sustainable development pathway. They say clean energy could create up to 14 million jobs by 2030, while improving energy access, supporting local industries, and keeping economic value within African economies.
Mohamed Adow of Power Shift Africa described the continued reliance on fossil fuels as a “fairytale of prosperity,” insisting that Africa’s real opportunity lies in homegrown renewable energy systems that can drive job creation and energy independence.
However, the debate remains unresolved, as some oil-producing countries maintain that fossil fuels are still essential for their economic growth and development. Nigerian officials, for instance, have emphasized a gradual “phase-down” approach rather than a full transition away from oil and gas.
The report also criticizes the current export-driven model, where crude oil is shipped abroad for refining, while African countries import expensive refined products, leaving many citizens without access to affordable and reliable energy.
Overall, the study calls for a rethink of Africa’s energy future, warning that continued dependence on fossil fuels may deepen inequality and economic vulnerability unless urgent reforms are made.
