By Ajong Mbapndah L
African countries must unite to industrialize now, says Sergio Pugliese President of the Angola Chapter of the African Energy Chamber. In an interview with PAV on the sidelines of the 2023 edition of the African Energy Week in Cape Town, South Africa, Pugliese questioned why the continent’s growth ambition should be compromised at the expense of people who had harmed the environment. The development interests, priorities, and prosperity of Africa in challenging times should not be impeded by actors most responsible for the ecological issues facing the world, said Mr. Pugliese in an interview which also covered energy developments in Angola and the African Energy Week 2023.
PAV: How is the energy landscape in Angola at the moment?
Sergio Pugliese: Angola’s power comes mostly from hydro. So, whenever we hear these conversations about energy transition and green energy, Angola has already met its target by having more than 80% of its energy from hydro. However, we cannot ignore the hydrocarbon power source in our energy mix. The oil and gas industry is the primary driver of our economy. We’re also producers of diamonds in Angola. At one point, we are the fourth largest producer of diamonds in the world, but we are mainly oil producers. We have data close with Nigeria; sometimes Nigeria is the major producer, and other times, Angola is currently at 1.2 million barrels daily.
Angola’s energy production is under a natural decline at the moment. However, initiatives, such as Africa Energy Week and the Angola oil and gas event, take place every year to establish a platform to attract additional investment to try to reverse the production decrease and provide chances for local markets to fund themselves.
How are the proceeds from oil and gas helping to meet the development needs of Angola?
Sergio Puglise: They have started a lot of reforms, which have culminated in a new, friendly, and conducive environment for investment. This allows the government to take the most out of the resources to help diversify the economy. They initiated several changes, culminating in a fresh, friendly, and hospitable investment climate. This enables the government to use available resources to diversify the economy. So, the real benefit comes from optimizing and diversifying Angola’s oil and gas economy. At the same time, it is being used to diversify industrial initiatives such as fertilizers. Also, two refineries are under construction, and one refinery has been modified to offer petroleum to the Angolan market. We have solar projects that have come on board, i.e., the Kara Kulu solar project down in the Namib and Huambo provinces. So, there are a lot of other areas within the energy space that are benefiting from these reforms and increased investment.
How is Angola coping with the energy debate and the push back on of fossil fuels?
Segio Puglise: Angola is part of the African voice that is fighting together with the 600 million people in the continent who do not have access to electricity and another 900 million people out of the 1.4 billion population who do not have access to clean cooking power sources. We are not polluters since most of Africa’s power comes from renewable sources. So, instead of pressing other nations to minimize their carbon footprint, we are being asked not to industrialize and expand our economy.
So, I believe we live in challenging times with dilemmas in our hands. The problem is determining how to ensure economic development. How do we combat energy poverty and other forms of poverty? At the same time, balance the environmental question. We are very pragmatic and practical. We continue to develop our industry and attract our investment to the oil and gas industry while adding other energy sources into the mix. We are also continuing to invest in hydropower distribution.
The critical point is that there should be equity in developing your economies to provide a future for your population. Governments and their citizens have a social compact. The government’s obligation is to give as many opportunities to future generations as possible, and the best way to achieve this is to use the resources available.
What is your impression about the ongoing African Energy Week 2023?
Sergio Puglise: The Africa Energy Week has been a brilliant event that has brought together the whole continent and world. We have participants from Asia, the United States, South America, the Middle East, and a big Saudi Arabian delegation. I believe that when we have the whole world talking with the Africans with the same voice about energy equity and access to investment, we can call this a success.
Personally, for the African Energy Chamber, we have put in a lot of effort this year to push the conversation that we live in a world that should be fair to everyone. And I believe we are being heard. We will also be at COP 28 to connect with individuals promoting the opposing agenda. Also, we will continue to speak in unanimity that resource development is the only way for us Africans to experience our own Industrial Revolution. The Western world is going through its fourth industrial revolution, the digital revolution. We are on the brink of our first revolution and should be allowed to industrialize. Why should we not develop our economies for the sake of those who have already damaged the environment? So, these issues and points are being discussed at Africa Energy Week. And I believe that the world is hearing us and will continue to hear us.
