The African Energy Chamber will be hosting a virtual launch for its first-ever advisory board publication African Energy Road to Recovery: How the African energy industry can reshape itself for a post-COVID-19 comeback. The public event, slated for 16 March will feature the participation of advisory board members Kola Karim, CEO of Shoreline Natural Resources; C. Derek Campbell, CEO of Energy & Natural Resource Security, Inc; Jovita Nsoh, Principal Program Manager at Microsoft and Akinwole Omoboriowo II, Chairman, and CEO of Genesis Energy Group; Nosizwe Nokwe-Macamo, Executive Chairman and Founder of Raise Africa Investments and Rémi Mouchel, Operations Director and Executive Board President of IFP Training.
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 Verner Ayukegba, Senior Vice President at the African Energy Chamber.
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% 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%. 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%, 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% – 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% 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% 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 (amzn.to/3qOC9E5), Barnes & Noble (https://bit.ly/38x5HQi), iTunes, and Google Play.