The African Energy Week (AEW) 2023, held in Cape Town, was more than just a conference—it was a ground-breaking symposium that highlighted the continent’s vast energy potential and the opportunities it presents. Serving as a nexus for policy makers, industry leaders, and global energy enthusiasts, AEW 2023 sought to shape the trajectory of Africa’s energy future, emphasizing collaboration, innovation, and sustainable growth.
Algeria: Strategic Positioning in the European Market
Sonatrach, Algeria’s state-owned oil company, understands the global significance of hydrocarbons. Looking ahead to 2050, Fethi Arabi, the company’s VP for business development and marketing, believes hydrocarbons will remain crucial. Algeria’s close location to Europe gives it a strategic edge, making it a primary natural gas supplier for the continent.
Its strategic edge comes from a combination of strong infrastructure, competitive pricing, and abundant hydrocarbon resources. Speaking at the African Energy Week in Cape Town, Arabi highlighted Algeria’s dedication to being a dependable, long-term supplier. With inherent flexibility, Algeria stands prepared to navigate market shifts, ensuring consistent value.
Additionally, Lounes Adour, Director of Promotion and Valuation of Hydrocarbons Mining Field ALNAFT, clarified the intentions behind the 2020 Hydrocarbons Law. This legislation marks a renewed openness to foreign investment in Algeria’s oil and gas domain. By cutting taxes and waiving customs duties on imported E&P equipment, Algeria signals its openness to global oil firms, anticipating increased growth and collaboration.
Adour shared, “We’re not just looking at exploration. We aim to develop assets, with over 100 yet-to-be-developed discoveries. The potential is immense, and the opportunities are many.”
Ghana: Reforming its Energy Sector for Growth
Pivotal discussions were carried out at the AEW 2023. Ghana stands at a pivotal juncture. With its untapped energy resources and an investment-friendly environment, the nation is poised to become a significant player in the global energy market. Ghana’s recent efforts to reform its fiscal policies and regulatory landscape were at the forefront of discussions during a country-dedicated session at the African Energy Week 2023 conference and exhibition.
Herbert Krapa, Ghana’s Deputy Minister of Energy, was optimistic, stating, “Our petroleum sector’s success is a testament to our policies. We’ve crafted a business environment that is both stable and predictable, two critical factors for international investors.”
Yaw Amoateng Afriyie, Deputy CEO of the Ghana Investment Promotion Centre, reinforced this sentiment, highlighting that Ghana’s regulatory stability and fiscal incentives were strategically designed to attract foreign investments.
The Petroleum Commission of Ghana, under the leadership of CEO Egbert Faibille Jnr, has been proactive in reviewing the current fiscal regime. The reforms underway are expected to further enhance Ghana’s attractiveness as an energy investment destination.
Amidst this backdrop of reform and optimism, major E&P players see a wealth of opportunities. Kosmos Energy, a significant player in Ghana, has been instrumental in placing the country on the global oil map. Their commitment to collaboration and fostering a conducive environment for their activities has been unwavering.
Uganda: The Rising East African Energy Hub
The Invest in Uganda Energies spotlight during the AEW 2023 provided a comprehensive view of Uganda’s energy trajectory. Sponsored by the National Oil Company and Uganda National Oil Company Limited, the spotlight was a testament to the public and private sectors’ commitment to bolstering Uganda’s energy sector.
Uganda boasts approximately 1.4 billion barrels of recoverable crude oil reserves. Their ranking as one of Africa’s fastest-growing energy markets has made them a hotspot for international energy investors. Their partnership with global giants like TotalEnergies and the China National Offshore Oil Corporation further cements their status in the global energy community.
The country’s ambitious plans aren’t confined to oil production. On the renewable energy front, Uganda is making significant strides. Eng. Ps. Irene Batebe, Permanent Secretary for the Ministry of Energy and Mineral Development of Uganda, commented on the nation’s plans, “Our current energy mix relies heavily on hydropower. Our vision is to amplify our generation capacity, targeting 52,000 MW by 2040.”
In Conclusion, the AEW 2023 served as a testament to Africa’s potential in shaping the global energy landscape. Algeria, Ghana, and Uganda stand out as beacons of progress, each presenting unique opportunities and showcasing the richness of Africa’s energy resources. As discussions at the AEW 2023 highlighted, collaboration, strategic partnerships, and a commitment to sustainable growth are crucial for these nations’ success in the energy sector. With such dedication and forward momentum, the future of energy in Africa looks promising.
Feel free to contact the Energy Transition Centre today with questions.
· Julius Moerder, Head of Energy Transition Centre email@example.com
· Oneyka Ojogbo, Head of Energy Transition Centre, Nigeria & West Africa firstname.lastname@example.org
· Leon van Der Merwe, Head of Energy Transition Centre, South Africa email@example.com
Author: Memoona Tawfiq