African national oil companies (NOCs) are adopting innovative financing strategies to advance oil and gas projects, ensuring continued investment amid the changing global energy landscape.
In a statement, Ore Onagbesan, Programming Director at the African Energy Chamber, highlighted that through strategies such as privatization and divestment, bond issuances, development finance, and resource-backed loans, NOCs are enhancing their financial capacity and positioning themselves as leaders in African oil and gas development.
The upcoming African Energy Week: Invest in African Energies 2025 conference, scheduled for September 29 to October 3 in Cape Town, will delve into the impact of these strategies on the continent’s hydrocarbon sector. The event, bringing together global financiers, development institutions, foreign operators, and NOCs, aims to foster a new wave of investment in African energy.
Privatization and asset divestment have emerged as key tools for African NOCs to optimize operations and attract private capital. By selling stakes in non-core assets and engaging in partial privatization, NOCs are raising vital funds to support oil and gas projects. A prime example is Angola’s Sonangol, which has reaffirmed its plan to launch an Initial Public Offering (IPO), with 30% of the company’s shares set to be offered.
This IPO is part of the broader Propiv initiative by the Angolan government, aimed at reforming the economy toward a free market. As part of the initiative, 11 of Sonangol’s processes will be made public through public tenders, limited tenders, and IPOs.
