JOHANNESBURG, South Africa, May 30, 2022/ — The African Energy Chamber (AEC) is proud to announce the launch of the Finance Summit at its annual African Energy Week (AEW) (AECWeek.com) which will take place from October 18 – 21, 2022 in Cape Town.
The AEW 2022 Finance Summit will highlight the role African financial institutions will play in funding oil and gas projects and the regulatory requirements African hydrocarbon producers can adopt in developing capital-attractive oil and gas regimes in an increasingly restrictive environment.
With Europe seeking alternative gas suppliers in light of tensions with Russia over the Ukraine crisis, Africa is well-positioned to increase exports to Europe and help the bloc meet its energy demand while optimizing hydrocarbon monetization.
This will provide a huge opportunity for investment to be directed towards oil and gas exploration and production and in infrastructure development in leading producers such as Algeria, Angola, and Nigeria and in emerging producers such as Mozambique.
In addition, the AEW 2022 Finance Summit will host investor-led discussions about how Africa can increase investment to boost its gas production and accelerate infrastructure development in a bid to meet the growing demand for natural gas globally in efforts to achieve energy transition targets.
The AEW 2022 Finance Summit aims to address the challenges and opportunities within Africa’s energy finance sector. The lack of adequate investment in oil and gas exploration, production and infrastructure development has restrained Africa from fully utilizing its energy resources to address energy poverty and for economic growth despite the continent having vast hydrocarbon reserves. As stated in the AEC’s Q1 2022 report, The State of African Energy, capital expenditure in Africa has continued to decline since its peak at about $60 billion in 2014 to close to $22.5 billion in 2020 due to factors such as the COVID-19 pandemic, the slow pace at which the continent is sanctioning new projects and industry-wide reductions in spending due to global energy transition policies.
Although Africa will commission some new oil and gas projects in 2022 – capital expenditure estimates for Africa in 2022 are projected at $30 billion – overall investments in the continent’s oil and gas market remain extremely low and well short of the level required to unlock the full potential of the continent’s oil and gas resources. As a result, Africa continues to see more than 600 million people living in energy poverty.
Moreover, with Africa heavily relying on hydrocarbons to meet its power generation needs, the AEC report states that expanding investments in oil and gas exploration and production, as well as in the development of refineries and transportation pipelines, will be vital to achieving energy security and independence while ensuring economic growth and the full monetization of energy resources. Unless capital is unlocked, as soon, Africa will continue to witness delayed progress in expanding its energy sector.
In line with this notion, and in a bid to address these barriers to growth, the AEW 2022 Finance Summit will hold a real discussion on Africa’s financial space. Led by industry experts, African energy leaders, private sector executives and finance leaders, the AEW 2022 Finance Summit will feature collaborative discussions on how African countries can raise capital for oil and gas projects.
“To fully realize industrialization and economic growth targets, Africa needs to leverage its hydrocarbons in the same manner in which developed economies such as Europe, America and Asia have and are still doing. However, Africa now needs to shift its mindset from relying on external financial aid, we now need to develop domestic-tailored financial solutions such as the proposed African Energy Bank that can help us optimize the use and monetization of oil and gas reserves.
There are, however, some Asian institutions such as the China Exim and China Development Bank who are still willing to help Africa to realize the full potential of its oil and gas,” said NJ Ayuk, Executive Chairman of AEC, adding that, “The role of a combination of private and private sector funding to boost Africa’s oil and gas production has never been more important than now.”
AEW 2022, in partnership with the African Petroleum Producers Organization and its member states and leading hydrocarbon producing countries such as Algeria, Niger, South Africa and Nigeria will discuss the development and implementation of sustainable financial solutions that Africa can implement to make energy poverty history by 2030.
Distributed by APO Group on behalf of African Energy Week (AEW).
Media Contact:
For sales related inquiries please contact sales@aecweek.com
For attendance related inquiries contact registration@aecweek.com
For speaker related inquiries contact speakers@aecweek.com
For media related inquiries contact media@aecweek.com
About the African Energy Week:
AEW 2022 is the AEC’s annual conference, exhibition and networking event. AEW 2022 unites African energy stakeholders with investors and international partners to drive industry growth and development and promote Africa as the destination for energy investments. Key organizations such as the African Petroleum Producers Organization, as well as African heavyweights including Equatorial Guinea and Nigeria, have partnered with AEW, strengthening the role the event will play in Africa’s energy future.
