The African Energy Chamber’s Investment Committee commits to facilitate investments worth billions of USD in 2021 for African energy projects

TheInvestment Committee ofthe African Energy Chamber (the Chamber)met for the second time since their appointment mid-last year,to set an agenda that will facilitate capital raising for energy projects in Africa. The committee acknowledged the increased difficulty of raising capital for energy projects in a post Covid era. However, the committee unanimously agreed that African Energy projects remain extremely profitable, when tackled with the right investment structure. According to the World Economic Forum, “Africa's urban population is expected to nearly triple by 2050, to 1.34 billion”.Consequently,there isan important need for investment in energy to cater for their needs, to facilitate the development of industry and the generation of much needed revenue and jobs.

The discussion focused on solutions to the current lack of investments. “The traditional way of investing ischanging.” SaidNosizwe Nokwe-Macamo, Executive Chairman & FounderofRaise Africa Investments. “The African Energy Chamber must looktotap into non-traditional funding streams and look further afield than the usual geographical hotspots for investments.”She added.

Similarly,Rolake Akinkugbe-Filani, Chief Commercial OfficeratMixta Africaemphasized that “To begin with, we need to be able to articulate clearly what the need is for energy across the diverse African countries and what the different opportunities are. Where possible & appropriate, we must tap into local sources of funding as well as other largely unexploredsources of funding, such as pension funds. There is appetite for African infrastructure projectsbut we must think of encouraging innovation tomeet multiple objectives.Developing infrastructure andtraditionalenergy sources, while also furthering transition to renewable energy. The Chamber, its partners, members and wider network must connect opportunities to funding opportunities.”

Gontse Moseneke, CEOatMahube Infrastructurereflected that “We must use this current situation to uncover where new opportunities arise. Our natural resources need to be translatedinto permanent capital and it takes bodies like the Chamber to be bold enough to facilitate theprovisionof energy needed for that. On the energy transition he said this was an opportunity for Africans to restructure, with the understanding that localisation is key.”

Finally, Folarin Lajumoke, Vice President for Africa at ION stressed that “Governments have a critical role to play in the quest to raise much needed capital to fund oil & gas projects. Recent events make for a very globally competitive landscape. In order to drive investors towards Africa, fiscal terms would need to be reviewed with a potential investororexplorer's ROI in mind. Many fiscal terms are no longer fitfor purpose in light of the emerging trend in energy transition. Funding for hydrocarbons in Africa will compete not only with similar opportunities in other continents but also with other sectors such as agriculture, technology and renewables. In a bearish market, the fiscal termsandpolicies in place could swing an explorer/investor from one geological basin to another. Hard-line bureaucracy on exploration is another major challenge. Exploration helps de-risk geology thereby attracting investment. Unattractive fiscal terms,coupled with bureaucratic excesses towards exploration,is toxic for capital raise. Furthermore, African NOCs have an important role to play by becoming full-cycle energy companies which seek opportunities outside their own countries. A diversified NOC such as Qatar Petroleum or Petronas is better placed in raising capital for growth/expansion than one which isn’t. It is also politically strategic for the much needed growth in intra-Africa trade.”

It is with this in mind that the African Energy Chamber willcall on interested investors and projects sponsors to approach the chamber and benefit from its network of partners and members to facilitate project implementation. “We will continue to build partnerships with the private sector and governments worldwideto attract critical funding to energy projects” said Samantha Raoult, Director of International relations at the chamber.

As a first step, it is imperative to identify the energy requirements across different African countries and directly approach a range of potential investorsthroughoutthe continent and worldwide to keep up with market needs.TheChamberis the voiceof the sectorand will continue to build bridges that bringstogether governments and companies in theAfrican energy industry to find a common ground.

The year ahead is an important one, with landmark projects going aheadfromSenegal to Mozambique, via Equatorial Guinea. While there is a global need for lower carbon energy projects, it is important to put into context that combined, African countries account forjust over 3% of the world’s greenhouse-gas emissions, despite being home to 14% of people.It is our core mission at the Chamber to keepfighting energy poverty and encourage the development of African resources to better the livelihood of African people.Collaboration, adapting to the changing environment and taking advantage of local resources will be key toachieving this objective.

Distributed by APO Group on behalf of African Energy Chamber.

Media Contact: Mandisa Nduli Director of Communications and Marketing African Energy Chamber news@energychamber.org

About the African Energy Chamber NPC: Established in 2018 to promote sustainable investments and best practice in the African Energy Industry, the African Energy Chamber (AEC) (www.EnergyChamber.org) brings together stakeholders from multiple African and global jurisdictions who are interested in energy matters across the entire energy value chain.

AEC members and partners include governments, indigenous and international businesses as well as multilateral organisations who are fully committed to free-market principles, the rule of law, education, entrepreneurship, transparency and other values that promote the development of the African energy industry in a manner that will render it sustainable and competitive.

To become a member, head over towww.EnergyChamber.org/membersand sign up.

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