Sonatrach Method Adopted for African Energy Development

The African Petroleum Producers Organization (APPO) has launched its inaugural pan-African platform for energy sector tenders, aiming to bolster the participation of African companies in continental energy projects. This initiative seeks to ensure that a greater share of contracts, employment, skills, and value from energy investments directly benefits African enterprises. The digital platform will function as a continental market, identifying African companies and their capabilities, and publishing tenders to facilitate access, particularly for local small and medium-sized enterprises.

At the core of this pan-African strategy is the adoption of the 'Sonatrach method,' which positions Algeria as a significant example for local content development. Sonatrach has for several years implemented a policy to promote national integration and local content, with an ambitious target of 55% local content by 2030. Reflecting this commitment, the Algerian group signed 1,047 contracts with Algerian-registered companies in 2024, valued at 1,473 billion dinars, and actively engaged with national businesses to foster partnerships and market access.

APPO's Secretary General, Farid Ghezali, an Algerian, explicitly cited Algeria's national approach as inspiration, likening the new platform to Algeria's Bulletin of Tenders for the Energy and Mining Sector (BAOSEM). This continental effort extends beyond a simple digital portal, aiming to structure a cohesive African market for energy suppliers and services. It seeks to leverage energy investments to develop local businesses, strengthen expertise, stimulate subcontracting, and facilitate technology transfer across its 18 member states, including Algeria, which co-founded the organization in 1987.