Oil market: Africa faces new turbulence [Business Africa]

 

In Africa, economies remain closely tied to the oil market. The recent production increase announced by OPEC and its allies, of 188,000 barrels per day, remains largely symbolic, as actual production remains below quotas.

This situation is explained in particular by tensions in the Middle East and disturbances around the Strait of Hormuz.

Another major development: the withdrawal of the United Arab Emirates from OPEC, which are becoming a direct competitor with increased production.

For African countries, the effects are mixed: potentially higher revenues for exporters, but increased pressure on importers, who are already facing rising energy prices.

In this uncertain context, reducing dependence on oil becomes a strategic issue for the continent.

Cameroon: The Lagdo dam is running out of steam

In Pitoa, near Garoua, power cuts have become a daily occurrence for residents. For several weeks, families have been struggling to cope, particularly due to the intense heat.

"Without electricity, we can neither use a fan nor preserve food," says Goodlive Gongang, a resident.

Despite being supplied by the Lagdo Dam, the northern regions are facing a decline in production due to climatic conditions. The reservoir was only less than 80% full in 2025, according to Eneo.

With rising demand, hydroelectricity is no longer sufficient. The use of thermal power is being considered, but its cost, approximately 5 billion CFA francs per month, remains high.

Meanwhile, residents continue to live to the rhythm of the power cuts.

Burundi: Price increases revive the coffee sector

In Burundi, the rise in the price of coffee cherries, from $0.4 to $0.9 per kilogram, is giving the sector a boost. A year later, farmers are showing renewed interest, particularly in Gitega, where some are restarting production.

“The price is good,” rejoices Mélance Hakizimana, a coffee farmer who is already developing his plantation. But the sector remains fragile. Production has fallen from 18,500 tons in 2020 to 7,500 tons in 2024, due in particular to past crises and structural difficulties.

Experts believe that recovery also depends on improving quality and investing in transformation.