Nigeria, South Africa seek to boost energy infrastructure through collaboration

For Africa to grow into an energy powerhouse, strategic collaboration between Nigeria and South Africa is crucial in driving this goal, industry players have said.

At the fourth edition of the South Africa Week in Lagos on Wednesday, industry players in the energy sector stressed the pivotal role of collaboration in ensuring that both countries tap into opportunities, including private investment, technology, and business partnerships.

The 2026 theme, ‘South Africa-Nigeria Partnership: Unlocking Infrastructure Investment Opportunities’, had speakers emphasise the strategic importance of energy diplomacy, cross-border collaboration, and infrastructure investment in driving Africa’s economic growth and energy security.

Thandi Moraka, deputy minister of International Relations and Cooperation, South Africa, said that a reliable energy supply is fundamental to attracting foreign direct investment and sustaining economic development.

“Without stable energy systems, countries risk limiting industrial growth and weakening investor confidence. We must then work together to align all our missions closely with our Agenda 2063, where we need to build the Africa that we want,” she said at the convening.

Energy was positioned not only as an economic necessity but also as a strategic tool of foreign policy, reinforcing the importance of energy diplomacy in shaping bilateral and regional relations.

Moraka noted the need for enhanced cooperation between Africa’s most populous country and South Africa, describing the nations as key players in Africa’s energy landscape.

“The shared goal is to create a continental energy market that not only meets local demands but also exports surplus energy, supporting any economic growth initiative and energy security across our beautiful continent of Africa.”

Industry experts at the convening all emphasised the role of the African Continental Free Trade Area (AfCFTA), which was identified as a critical platform for advancing energy cooperation across the continent.

Moraka explained that AfCFTA offers a unique platform to facilitate intra-Africa trade initiatives, including energy commodities, equipment, and technology, which continue to encourage key role players. She called for a strategic partnership with Nigeria that can reduce trade barriers

The 2026 edition of the economic relationship between South Africa and Nigeria holds particular significance, coinciding with the 30th anniversary of South Africa’s democratic Constitution and 32 years of unbroken diplomatic relations between the two African nations.

These milestones underscore the enduring partnership between the two nations, rooted in shared history and strengthened through formal agreements and ongoing collaboration.

On the issue of grid and distribution limiting the delivery of available power and driving heavy reliance on off-grid generation, Pedro Omontuemhen, partner at PricewaterhouseCoopers (PWC), said that private capital will play a central role in scaling energy infrastructure, improving operational efficiency, and accelerating project delivery across the value chain.

“Growing opportunities in gas-to-power, renewables, and transmission infrastructure position Nigeria as a key market for long-term energy investment,” noted Omontuemhen, who is also an oil & gas expert.

According to him, structural grid limitations and not generation capacity are the primary bottleneck to electricity supply in Africa. He described Nigeria’s power challenge as not resource scarcity but delivery constraints.

However, Omontuemhen noted that Nigeria and South Africa’s complementary strengths create scalable energy investment opportunities, but it would all depend on sustained investment in stronger market discipline, regulatory enforcement, and bankable frameworks.

The speakers all hinted at the same core: for Africa to grow into a net supplier of crude oil and replicate another Dangote Refinery in other African countries, then collaboration is key.

Currently in South Africa, Omontuemhen explained that bilateral trade remains structurally imbalanced. South Africa exports an average of $468.48 million crude oil and imports roughly $1.69 billion, resulting in a $1.22 billion deficit.

“This dynamics is largely driven by South Africa’s reliance on Nigerian crude oil, positioning the relationship as one of strategic interdependence rather than imbalance alone,” he said.

Africa’s combined economic output could reach $3.32 trillion by 2036, with Nigeria and South Africa remaining dominant economies.

Chichi Emenike, managing director of Neconde Energy Limited, said industrialisation and employment expansion are impossible without reliable energy access. But with Nigeria’s abundant oil and South Africa’s advanced infrastructure, this creates opportunities for joint investments and technology transfer.

“Energy that is available and accessible cannot be overstated,” Emenike said.