Survey of Policy and Business Requirements to Boost Hydrocarbon Investments in Africa

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Moderated by Rene Awambeng, Global Head of Client Relations at Afreximbank and Member of the Advisory Board of the African Energy Chamber, under the theme “Facilitating Investment in the Oil and Gas Industry in Africa”, speakers included Matthieu Milandri , Head of Upstream Finance at Trafigura; Taiwo Okwor, vice president of natural resources at Africa Finance Corporation (AFC); Zakaria Dosso, Managing Director of Africa Energy Investment Corporation; and Thembisile Salman, a senior executive at the New Development Bank.

Commenting on where the African oil and gas industry should find funds to accelerate exploration and production, Awambeng said that “Africa is a $1.5 billion market and as such needs to fund its own. construction of infrastructure, including railway lines, refineries and pipelines. . Currently, we buy our own oil at a price three times higher than the price at which we would have sold it due to the lack of infrastructure.

Milandri added that “multinational banks and local banks that replace international banks in financing hydrocarbon development should stop competing with each other and instead combine their expertise. We recently collaborated with AFC to ensure that a combination of our partners and financial models are used to address the growing infrastructure gap.

Investment initiatives led by the private sector will ensure sufficient capital inflow, however, governments should commit to funding banks to finance energy projects

Zakaria Dosso emphasized that the private sector is more dynamic and as such will be able to provide the massive investments needed to meet the energy transition challenges facing the African oil and gas industry. He added that the partnership between APPO and Afreximbank to develop an African Energy Bank will enable increased private sector participation to unlock the full potential of the continent’s oil and gas industry.

“There is an urgent need for improved cooperation between the 67 Development Finance Institutions (DFIs) in Africa, as well as increased collaboration between African States, in order to bring together financial resources to accelerate investments on the entire oil and gas value chain,” Dosso said. .

Expanding on Dosso’s notion, Okwor added that “investment initiatives led by the private sector will ensure sufficient capital inflow, however, governments should commit to funding banks to finance energy projects. The political will to finance the banks will allow other investors to put their money in the sector. The MoU signed by Afreximbank and APPO for the power bank is a good start and will serve as a model for how Africa can collectively work to address the lack of infrastructure such as refineries and pipelines that pushes Africa to be a net exporter of refined oil. despite huge oil and gas reserves. AFC seeks to participate in the development of refineries such as that of Cabinda in Angola »

Although Africa is developing its own financial solutions, the importance of maintaining partnerships with international financial organizations was also highlighted during the discussion with Salman stating that “Africa cannot do it alone, we always need of our international partners”.

Finally, the discussion concluded with an inquiry into how the African oil and gas industry should respond to global calls to cut carbon emissions. On that note, Milandri explained that Africa should not be penalized for emissions that the continent is not responsible for, however, African hydrocarbon projects should prioritize the integration of technologies and business practices. sustainability such as reducing gas flaring and deploying carbon capture solutions.

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