By Milliam Murigi
For decades, oil and gas discoveries across Africa have been sold as a ticket to prosperity. Governments and energy companies have repeatedly promised jobs, industrialization, economic growth and reliable energy access.
But for millions of Africans, those promises remain painfully out of reach according to a new report by Oil Change International and Power Shift Africa.
“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, lost livelihoods, and rising costs of living,” says Thuli Makama, Africa Director, Oil Change International.
The report titled Pipe Dreams: How Oil and Gas Have Failed to Develop Africa reveals that despite decades of fossil fuel extraction, many African countries rich in oil and gas continue to struggle with poverty, inequality and poor access to electricity.
Nigeria, Africa’s largest oil producer, for example, has earned billions of dollars from crude exports over several decades. Yet millions of households still lack reliable electricity, while many communities living near oil infrastructure continue to grapple with pollution, unemployment and poor public services.
In Mozambique, vast offshore gas discoveries were once presented as an economic breakthrough capable of transforming one of the world’s poorest countries. But years later, communities displaced by gas projects continue to grapple with insecurity and economic hardship.
“The findings of this report are difficult to ignore. Too often, oil and gas wealth has failed to translate into broad-based prosperity for ordinary Africans. Many fossil fuel-rich countries remain energy poor, while wealth flows outward and communities closest to extraction continue to be underserved,” said Mohamed Adow, Power Shift Africa, Founding Director.
This according to him, is one of the great contradictions of our time: Africa exports energy while millions of Africans still cook with charcoal and lack reliable electricity. The issue is neither a lack of resources nor a lack of potential. The problem is an extractive economic model designed primarily around exports and multinational profits, rather than building resilient local economies and delivering energy access for people.
According to Adow, fossil fuel expansion has largely benefited multinational corporations and political elites while leaving ordinary citizens exposed to environmental destruction, debt and rising living costs.
That is why the continent needs to accelerate investments in renewable energy systems that can expand electricity access, create jobs and support long-term economic resilience without deepening the climate crisis.
“Continued investment in oil and gas risks locking countries into unstable economies just as the rest of the world shifts toward cleaner energy systems,” he said.
According to him, Africa should not be forced to choose between development and climate action. Both are possible together. Real prosperity will not come from exporting more fossil fuels. It will come from investing in the people, renewable resources and their future.
The report reveals that, unlike oil and gas, renewable energy can be deployed where people live, supports local economic activity and creates significantly more jobs. Apart from that, renewable energy investments could create more direct benefits for communities by expanding electricity access, reducing energy costs and supporting local industries without the environmental damage linked to fossil fuels.
“Fossil fuels are not a viable foundation for equitable economic development in Africa. A different approach is needed. Renewable energy offers a more just and inclusive alternative,” added Adow.
The International Renewable Energy Agency estimates that clean energy could create up to 14 million jobs in Africa by 2030, with renewable energy generating two to three times more jobs per dollar invested than fossil fuels.
Additionally, solar, wind, geothermal, small-scale hydropower systems, and battery storage can be deployed quickly, at multiple scales, and in places long excluded from central grids. Mini‑grids and stand‑alone systems can electrify communities in years rather than decades, while renewable‑powered clean cooking solutions reduce burdens on health and time that are borne disproportionately by women.
“Long‑term studies in Kenya and Nigeria show that solar mini‑grids have led to higher household incomes, increased business activity, improved health outcomes, and reduced time spent collecting fuel, particularly for women. Energy access through renewables is therefore not a trickle-down promise but a direct development intervention,” reads the report.
According to Makama, the current geopolitical conflict has laid bare once again just how volatile and unjust the oil and gas 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.
