As countries continue to navigate global energy uncertainties linked to the Israel-United States–Iran tensions, experts say Africa holds vast energy potential, but weak policies and poor coordination remain key constraints. ALSO READ: Why the price of oil matters more than you might think This was highlighted during a panel on energy security, where governance gaps were identified as key barriers to unlocking the continent’s energy potential, with a recurring concern being the lack of stable and predictable policy environments that continue to discourage sustained investment. Tunde Oni Nosakhare, an expert in energy development, observed that since the private sector is heavily dependent on government policy in Africa, unpredictable policymaking makes it hard for investors to do business. “If I design a ten-year strategy and the policy changes midway, it affects everything. This unpredictability makes it difficult for investors to commit capital to large-scale energy projects, including oil exploration, refining, and infrastructure development,” he said. The result, he added, is a cycle where countries remain dependent on imports, even when they possess significant natural resources. ALSO READ: EA leaders explore ways to establish joint oil refinery Beyond policy instability, governance gaps, particularly corruption and a lack of transparency, were highlighted as major barriers to Africa’s energy progress. Using Nigeria as an example, Tunde pointed to persistent opacity across the oil value chain, arguing that while production and trade continue, accountability remains weak. “In Nigeria, oil is being exported, yet there’s no transparency in what’s happening in government. You have traders making profits, different actors involved, and decisions being made, but it’s hard to track who did what, why, and whether it benefits the country,” he said Tunde argued that such opacity not only distorts markets but also undermines public trust and limits the ability of governments to channel resource wealth into long-term development. Teddy Kaberuka, an economic policy analyst, pointed to long-term contracts and opaque agreements with foreign investors as another challenge, warning that such deals often limit countries’ ability to fully benefit from their own resources. “What we are facing today is a new form of control; contracts are signed for decades, and when governments cannot repay loans, resources are exploited. These practices weaken national control over strategic sectors and reduce the potential for domestic value creation,” he said. Kaberuka also highlighted the absence of strong regional coordination, arguing that African countries could benefit more from joint investment in extraction, refining, and energy infrastructure. “Trust between states remains limited, making co-investment difficult despite shared interests. If governments don’t trust each other, they cannot invest together. Yet if we pooled resources and built shared systems, we would not need to depend entirely on external investors,” he said. ALSO READ: How could the US-Israel war on Iran affect Rwanda? ‘No adequate buffers’ The discussion also underscored a persistent lack of long-term planning, with many African economies operating without adequate buffers against shocks. “The crisis has been ongoing for more than two months, but how many times have African leaders come together to address it? Very little collective action has been seen, and implementation remains uncertain,” Kaberuka noted. Hakim Shyaka, the Downstream Petroleum Policy Specialist at the Ministry of Trade and Industry (MINICOM), said recent global shocks exposed the fragility of existing energy systems, with some countries experiencing sharp price increases within weeks. “As Africans, we can join forces since we have shared infrastructure and a common market for energy. But achieving this would require stronger institutions, clearer policies, and a shift towards collective planning, areas where progress has been slow,” he said. Without addressing governance failures, experts warned, the continent risks remaining energy-dependent despite its resource wealth. But with stronger leadership, transparent systems, and long-term planning, Africa could begin to turn its energy potential into true independence.
