A new report by Oil Change International and Power Shift Africa has found that oil and gas production has failed to deliver meaningful economic development in Africa’s producing countries, instead deepening inequality, vulnerability to global shocks, and long-term economic dependence.
The report, Pipe Dreams: How Oil and Gas Fail to Deliver Economic Development in Africa, draws on evidence from 13 oil and gas-producing countries across the continent. It concludes that decades of extraction have not significantly reduced poverty or driven broad-based economic growth, but have largely benefited a small elite while leaving structural development challenges unresolved. The findings come as African leaders prepare for the Africa–France Summit, formally titled the Africa Forward Summit “Africa–France Partnerships for Innovation and Growth,” scheduled for 11–12 May 2026 in Nairobi, Kenya, where energy investment and economic cooperation are expected to feature prominently.
Despite exporting large volumes of oil and gas, the report notes that many producing countries remain heavily dependent on imported fuels and are exposed to global price volatility. At the same time, hundreds of millions of people across the continent still lack access to electricity and clean cooking, underscoring what the report describes as a persistent development gap in fossil fuel-dependent economies.
It further highlights structural constraints within the oil and gas sector, including revenue extraction by multinational companies, limited job creation, damage to other productive sectors such as agriculture, and exposure to boom-and-bust cycles. The report warns that these risks are likely to intensify as global energy demand shifts, increasing the likelihood of stranded fossil fuel assets, rising debt burdens, and declining government revenues. It argues that renewable energy presents a more sustainable pathway for expanding energy access, creating jobs, and strengthening local economies.