Oil Market: Africa facing new turbulence [Business Africa]

Across Africa, economies remain closely tied to the oil market. OPEC and its allies recently announced a production increase of 188,000 barrels per day, though the move remains largely symbolic, as actual output still falls below quotas.

The situation is being driven in part by tensions in the Middle East and disruptions around the Strait of Hormuz.

Another major development is the withdrawal of the United Arab Emirates from OPEC, turning the country into a direct competitor with rising production levels.

For African nations, the impact is mixed: potentially higher revenues for oil exporters, but growing pressure on importing countries already struggling with rising energy costs.

In this uncertain environment, reducing dependence on oil is becoming a strategic priority for the continent.

Cameroon: Lagdo Dam Struggles to Meet Demand

In Pitoa, near Garoua, power outages have become part of daily life. For weeks, residents have struggled to cope, especially amid intense heat.

“Without electricity, we can neither use fans nor preserve food,” says resident Goodlive Gongang.

Although northern regions are supplied by the Lagdo Dam, electricity production has declined due to climate conditions. According to Eneo, the reservoir was filled to less than 80% capacity in 2025.

With demand rising, hydropower is no longer enough. Authorities are considering thermal power generation, but the cost, around 5 billion CFA francs per month, remains high.

Meanwhile, residents continue to endure repeated blackouts.

Burundi: Rising Prices Revive the Coffee Sector

In Burundi, higher coffee cherry prices, rising from 0.4 to 0.9 dollars per kilogram, are giving new momentum to the coffee sector.

A year later, farmers are once again showing interest, particularly in Gitega, where some are restarting production.

“The price is good,” says coffee grower Mélance Hakizimana, who is already expanding his plantation.

But the sector remains fragile. Production fell from 18,500 tons in 2020 to 7,500 tons in 2024, largely due to past crises and structural challenges.

Experts say the recovery will also depend on improving quality standards and investing in processing capacity.