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Foreign Companies are Repositioning to Take Advantage of the Africa’s Abundant Energy Resources

According to the CEO of Italian oil company Eni, Claudio Descalzi, the continent has the potential to become a major source of energy for the world, while citing the continent’s large reserves of gas, sun, and wind as ideal for the energy transition. International energy companies, including Eni, have increased their investments in Africa in recent years, a shift from their previous approach of diminishing the continent’s importance in energy markets. However, Africa’s share of the world’s liquefied natural gas (LNG) exports has declined from one-fifth to half, and its shares of oil and coal production have also decreased. This is due to a number of factors, including the decline in investments in the sector, the deterioration of security in Nigeria, and the need to transition to cleaner energy sources. Two major LNG projects have been launched in Tanzania and Mozambique, with a combined value of up to $60 billion. Mozambique exported its first shipment of LNG in November 2022, and is expected to increase production in the coming years.