African Energy Chamber’s New Book Outlines The Importance Of Structuring Deals That Benefit Local Economies
By Celestine Okorie, Correspondent South Africa
On March 16, 2021 at 4PM SAST the African Energy Chamber (Chamber) will be joined by some of its advisory board member for the launch of its latest publication, African Energy Road to Recovery: How the African energy industry can reshape itself for a post-COVID-19 comeback.
The open to public one-hour session will discuss key topics explored in the book and allow a Q&A session to all media.
The launch event will be moderated by Senior Vice President at the African Energy Chamber Verner Ayukegba and feature the participation of CEO of Shoreline Natural Resources Kola Karim; CEO of Energy & Natural Resource Security, Inc C. Derek Campbell; Jovita Nsoh, Principal Programme Manager at Microsoft Jovita Nsoh and Chairman and CEO of Genesis Energy Group Akinwole Omoboriowo II; Executive Chairman and Founder of Raise Africa Investments Nosizwe Nokwe-Macamo and Operations Director and Executive Board President of IFP Training, Rémi Mouchel.
As global energy investment reaches record lows, the ability of sub- Saharan Africa to finance large scale infrastructure projects depends on the successful implementation of transformative trade, investment and governmental reforms.
The impact of COVID-19 on energy investment flows cannot be understated. At the onset of 2020, global investment in the energy sector was anticipated to increase by two percent – the largest increase in six years – and instead, is estimated to have dropped by 20 per cent year-on-year, according to the International Energy Agency’s World Energy Investment 2020 report.
In the oil and gas industry alone, investment is estimated to have declined by one-third, while investment in shale contracted by 50 per cent. If investment levels were to remain the same in 2021, oil output would drop by nine million barrels per day by 2025. Global investment in the power sector is estimated to have declined by 10 per cent, coupled with a nine percent reduction in electricity network investment.
While renewable investment has been less affected by the pandemic – with the share of global expenditure in clean energy technologies increasing from approximately one-third to 40 per cent – it is still significantly less than the level needed to facilitate the energy transition.
In the short-term, volatile demand, reduced cash flow, ongoing lockdowns and disrupted supply chains caused oil and gas companies to cancel or postpone new projects, with greenfield investment in Africa decreasing by 58 per cent year-on-year in the first three months of 2020, according to the U.N. Conference on Trade and Development.
Large debt liabilities and shifting project economics threaten to hinder investment in the long-term, in conjunction with limited financing options for emerging markets. For its part, Africa represents the second-fastest growing region globally (after South Asia) – with an estimated annual growth rate of 3.9 per cent between 2017 and 2022 before the pandemic, and associated opportunities in infrastructure, agriculture and energy. In the face of COVID-19, African governments are tasked with implementing transformational domestic reforms to spur foreign direct investment in a limited capital environment, with a view to growing local economies.
The African Energy Road To Recovery: How The African Energy Industry Can Reshape Itself For A Post COVID-19 Comeback book is currently available for pre-order across all major online retailers including Amazon.
