New Report: Oil and Gas Fail to Deliver Development in Africa

As conflict-driven price shocks expose fossil fuel volatility, new analysis warns against deepening reliance ahead of Africa–France Summit

Nairobi, Kenya, May 8 2026 — As global energy markets are rocked by conflict and geopolitical instability, a new report by Oil Change International and Power Shift Africa finds that oil and gas production has failed to deliver economic development in Africa’s producing countries and is instead deepening vulnerability, inequality, and dependence.

The report, Pipe Dreams: How Oil and Gas Fail to Deliver Economic Development in Africa, draws on evidence from 13 producing countries in Africa and finds that decades of extraction have failed to reduce poverty or drive economic growth, and instead are lining the pockets of an elite few. The findings come at a critical moment, as leaders prepare for the upcoming Africa–France Summit, where decisions on energy investment and economic cooperation will shape development pathways across the continent. The Africa Forward Summit “Africa–France Partnerships for Innovation and Growth” is a Summit of Heads of State, Governments, and CEOs to be held on 11–12 May 2026 in Nairobi, Kenya.  

Despite exporting large volumes of oil and gas, many countries remain dependent on imported fuels and global price shocks, while hundreds of millions of people still lack access to electricity and clean cooking.

The report identifies structural features of the oil and gas industry that limit its contribution to development, including wealth extraction by multinational companies, weak job creation, damage to other sectors such as agriculture, and exposure to boom-and-bust cycles. It also warns that these risks are increasing as a result of the global energy crisis. As global demand for oil and gas is expected to peak and decline, new projects risk becoming stranded assets, leaving countries with debt and declining revenues.

The report highlights renewable energy as a more effective pathway, with the potential to expand energy access, create jobs, and support more resilient and locally rooted economies.

Statements

Thuli Makama, Africa Director, Oil Change International, said: 

“Oil and gas have not and will not deliver development for Africa. Instead, this model concentrates wealth in the hands of multinational corporations and political elites, while communities are harmed by pollution pollution, lost livelihoods, and rising costs of living. The current geopolitical conflict has laid bare once again just how volatile and unjust this system is, by driving up energy and food prices, pushing millions closer to hunger, and making it harder for families to afford basic necessities. The only way forward is a shift to renewable energy that puts people first and delivers real, lasting development.”

Mohamed Adow, Founding Director, Power Shift Africa, said:

“Once again, Africa is being sold a fossil fuel fairytale that promises prosperity but delivers dependence. Decades of oil and gas extraction have left producing countries more exposed to global shocks, not less — with wealth flowing out, not down. At a time when the world is moving on from fossil fuels, doubling down on this broken model risks locking African economies into stranded assets and rising debt. The real opportunity is clear: homegrown renewable energy that creates jobs, expands access, and keeps value in African economies.”

Kudakwashe (Kuda) Manjonjo , Just Transition Advisor and Lead on Critical Minerals and Green Industrialization at Power Shift Africa, said: 

“Across Africa, we’ve seen the same pattern repeated: countries rich in oil and gas remain energy poor and communities are left behind. This is not a failure of African countries—it is a failure of an extractive model that was never designed to deliver development. Decades of fossil fuel extraction have exposed countries to volatile prices, debt, and pollution, while millions still lack access to reliable energy. Africa’s future lies in its vast potential to be a clean energy superpower.”

ENDS