Africa Must Build Industry Beyond Local Content – Ogundare

Source: Daily Independent

LAGOS  – Africa’s role in global energy will hinge less on its resources and more on its ability to build homegrown industrial capacity, deploy technology, and create world-class companies that drive long-term growth. 

That was the core message at the 2026 SPE Africa Technology Conference. Industry leaders agreed: real progress will come from innovation, skills development, true local content, and stronger regional collaboration to position Africa higher up the global energy value chain. 

Speaking during a high-level panel session on “Building African Capacity: Local Content, Skills and Industrial Development” recently, Dr. Bolaji Ogundare, Group Executive Director of Pan Ocean/ Newcross Petroleum, argued that while Africa has made remarkable progress in increasing indigenous participation across the energy sector, the continent’s next challenge is transforming participation into capability ownership. 

Drawing on Nigeria’s experience, Dr. Ogundare said: “Africa has made significant progress in increasing indigenous participation across the energy value chain. We now see more African-owned companies, greater local workforce representation, and stronger policy frameworks supporting local content.” 

Presenting data-heavy insights, he noted that Nigeria’s upstream sector has expanded from fewer than 10 operating companies in 2010 to 117 today, while service companies have grown to 11,764, with indigenous participation increasing from less than five per cent to more than 60 per cent. 

Collectively, these companies have generated more than 141,000 direct jobs across the industry. 

However, he emphasised that participation is no longer enough. “The most critical gap remains the transition from participation to capability ownership. Too often, local content is measured by compliance metrics rather than the development of sustainable industrial capacity, technology ownership, and globally competitive enterprises,” he added.