Africa's Major Energy Projects Face Persistent Delays and Legal Risks
Africa's largest energy projects are experiencing significant delays due to financing issues, governance challenges, and legal disputes, impacting the region's development potential. The African Energy Bank aims to alleviate funding shortages but has faced its own setbacks, highlighting broader structural weaknesses in the sector.
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As of June 2026, Nigeria aims to launch the African Energy Bank (AEB), targeting $5 billion in capital to support hydrocarbon and renewable energy projects. Originally set to begin operations in September 2024, the AEB has seen multiple delays, with July 1, 2026, as the latest target date.
Key projects, such as the Ajaokuta-Kaduna-Kano gas pipeline in Nigeria, face significant delays and budget overruns, while TotalEnergies' LNG project in Mozambique has been impacted by security concerns, pushing costs from $15.5 billion to $20 billion. The East African Crude Oil Pipeline (EACOP) in Uganda has also seen a budget increase from $3.6 billion to $5.6 billion, with operational delays now anticipated until 2027.
Legal disputes, as seen in Senegal's Woodside Energy case, further complicate the landscape, highlighting the need for effective dispute resolution mechanisms within the AEB. Without resolving these structural issues, Africa's energy sector may continue to struggle with investment and development.
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