Progress continues to be made to unlock the full potential of the African energy market, says NJ Ayuk
Africa is finally speaking up and speaking up in a forceful way about its energy needs. With the complex mix of enormous potential, severe challenges and gapping needs, the road to energy security remains bumpy. Still, the progress is real, and the energy revolution championed by the African Energy Chamber-AEC, is not only on course but beginning to show palpable progress, says NJ Ayuk.
Arguably the face of African Energy, NJ Ayuk who serves as Executive Chairman of the African Energy Chamber has been one of the most articulate voices on energy related issues. Where others come to the continent to reap, NJ and the Chamber have continued to sow. In addition to a myriad of events partnered across the continent since the year started, NJ and the AEC have been on the offense hosting invest in African energy events in London, Oslo, Dubai, and Paris coming up.
“The message we continue to drive at these forums is that Africa is open for investment, and by investing in Africa, you are not only lifting over 600 million people that currently lack energy access out of energy poverty but are financing the very resources that will drive economic growth and industrialization while stabilizing global supply chains,” says NJ Ayuk.
With over 600 million without access to electricity and over 900 million without access to clean cooking solutions, Africa cannot afford to leave its oil and gas in the ground, Ayuk says.When faced with an energy crisis, Europe has once again turned to coal, and yet Africa continues to be told to abandon its oil and gas, Ayuk argues
“We will make oil and gas in Africa a success and not a cautionary tale of missed opportunity. We will develop and industrialize our economies, we will create jobs and increase revenue, and we will position Africa as global energy hub, all on the back of oil and gas,” says NJ Ayuk in an interview with PAV.
Could we start by getting a synopsis of the African energy scene at this point of the year, what has changed, what is working and where are we still facing stiff challenges?
We are seeing a lot of exciting developments across the African energy sector in 2023. From ambitious exploration campaigns in Namibia, the DRC and Sierra Leone, to large-scale infrastructure projects in Angola, Uganda and Mozambique, to forward-focused local content laws and business practices continent wide, progress continues to be made to unlock the full potential of the African energy market. However, we are still faced with supply shortages, the overreliance on imports and price volatility. These challenges can all be addressed with investment and an increase in exploration.
By investing in Africa, you are lifting over 600 million people that currently lack energy access out of energy poverty and building pillars that drive economic growth, says Ayuk to investors.
The African Energy Chamber has been on the offensive with key events in London, Germany, and Dubai, what is the message you are taking to partners and how is this been received?
At its core, the Invest in African Energy roadshow connects African policymakers with global investors. The message we continue to drive at these forums is that Africa is open for investment, and by investing in Africa, you are not only lifting over 600 million people that currently lack energy access out of energy poverty but are financing the very resources that will drive economic growth and industrialization while stabilizing global supply chains. For too long, Africa’s oil and gas resources have remained untapped. The forums are aimed at turning this trend around, providing new opportunities for mutually beneficial collaborations between African and global players.
For a continent with such high potential but with critical needs, how is this new approach of hosting events and networking with international stakeholders likely to impact the energy fortunes of the continent?
It is through these types of events that Africa will secure the financing it needs to develop its entire energy value chain. Africa’s energy needs primarily come down to investment. We have the resources; we have the political will; and we have a capable workforce. These forums take Africa to the world. We provide the opportunity for global investors and project developers to directly connect with African energy leaders, enabling new deals to be signed, while advancing already forged ties between companies and financiers active on the continent. What’s more, these forums lay the foundation for discussions, deals and project launches that will take place at this year’s African Energy Week (AEW) conference. We are starting the conversation now.
Under the leadership of NJ Ayuk, the African Energy Chamber and Afreximbank signed an MoU to boost African Energy Investments at AEW 2022
At the last African Energy Week, a number of blockbuster deals were signed, and the Chamber signed an MoU with the Afreximbank, any insights on these are playing out?
We had a number of industry-advancing deals signed during last year’s edition of AEW, including the AEC’s memorandum of understanding signed with the Afreximbank, and already, we are seeing progress. The Chamber continues to engage with the Afreximbank to increase private sector investments across Africa’s oil and gas industry. The Afreximbank partnered with the AEC for the Invest in African Energy Forum in London, driving discussions and connecting European investors with African projects. Other deals such as between Amni International and the Afreximbank; Sasol and AMCO; Technip Energies and NAMCOR; and Moneda Invest Africa and NAMCOR are beginning to take shape. We are excited to hear about their progress during this year’s AEW.
One of the key reports issued this year by the African Energy Chamber was on electricity in South Africa, how bad is the situation at the moment and how could the report help the government of President Ramaphosa to better handle the crisis?
South Africa’s energy crisis continues to cause significant impacts on the economy, with the country experiencing between 4.5 and 6 hours of regular scheduled rolling blackouts per day. The South Africa-focused report offers an overview of the energy industry and serves as a guide to the current challenges and upcoming opportunities across the power generation sector. The report helps every energy stakeholder, from government to project developers to financiers to policymakers, by providing the information the country needs to make informed decisions on the power market.
We provide the opportunity for global investors and project developers to directly connect with African energy leaders, says NJ Ayuk on the AEC global offensive
NJ Ayuk is out with a new book-A Just Transition: Making Energy Poverty History with An Energy Mix, what is the message you sort to convey and how has the book been received across Africa and the energy world at large?
‘A Just Transition: Making energy poverty history with an energy mix’ highlights, in no certain terms, just how fatally the International Energy Agency’s ambitious green energy policies are stifling and crippling the energy economies of Africa. The book explored a number of key themes, diving into the prospect of a prosperous future for African nations and the obstacles that continue to impact development. The book was met with critical acclaim, and merely days after it was published, it shattered records to become a number-one bestseller across multiple Amazon categories. This alone speaks to the impact the book continues to have.
Earlier in the year as well, Gabriel Obiang Lima, one of the most vocal voices on the energy scene switched Ministerial portfolios in Equatorial Guinea, is there any impact this has hard on the energy debate and how are relations shaping up with his successor Antonio Oburu Ondo?
Equatorial Guinea’s objectives remain the same: to develop a thriving regional energy hub in the country on the back of natural gas. Gabriel Mbaga Obiang Lima played an instrumental part in securing new investment, kickstarting development while driving the message that gas is good for Africa. Antonio Oburu Ondo brings to the position a wealth of experience, having previously served as Managing Director of GEPetrol, the national oil company. As such, he too is expected to play an instrumental role as he leads the Ministry to realize the country’s energy sector and wider national development agenda.
A Just Transition-Making Energy Poverty History with an Energy Mix.is the latest book from NJ Ayuk
In Nigeria, could we get your take on how the Buhari administration fared on the energy scene and what needs to be done by the new administration led by Ahmed Bola Tinubu to better improve the energy fortunes of that country?
Nigeria has made great strides towards creating an enabling environment for investment, implementing the Petroleum Industry Act in 2021, cracking down on illegal oil theft and incentivizing new investment and development across the oil and gas sectors. Under the Ahmed Bola Tinubu administration, we expect to see this progress continue. Representing the biggest oil producer in Africa, and yet ripe with exploration opportunities, investors are beginning to turn their eyes to the Nigerian market, and we look forward to seeing how the market grows this year and beyond.
May we know how preparations are going for the African Energy Week 2023, any incentives or direct pitches you may want to make to potential partners and stakeholders to make the trip to Cape Town in October?
Preparations are well underway for the 2023 edition of AEW. The conference represents the biggest energy event on the continent, and this year, we are once again supported by a suite of high-level partners and sponsors. This year promises to be even bigger and better than before, with even more deals signed, partnerships forged, and project developments kicked off. Still under a mandate of making energy poverty history by 2030, AEW 2023 will proudly take place under the theme, ‘The African Energy Renaissance: Prioritizing energy poverty, people, the planet, industrialization and free markets.’ The conference speaks for itself: if you want to sign deals, come to AEW.
African Energy Week 2023 will proudly take place under the theme, The African Energy Renaissance- Prioritizing Energy Poverty, People, the Planet, Industrialization and Free Markets
The next stop of the invest in African Energy events comes up in Paris on June 1st, may we know what motivated the choice of Paris, how important is the event and what should participants expect?
The Invest in African Energy Forum in Paris offers an exciting program of high-level keynote addresses, market-focused panel discussions and presentations by both African energy leaders and global stakeholders. For years, France has played an instrumental role in helping Africa unlock the full potential of its energy sector, with companies such as TotalEnergies, Technip Energies, Perenco, Engie, EDF and others driving successful project developments. The choice of Paris lies in the country’s commitment to Africa’s energy future, and the Forum will not only build on existing Africa-Europe ties but drive new levels of cooperation.
As we wrap up this interview, any other message that you will want to send to the world from an African perspective on energy stakes and prospects?
With over 600 million without access to electricity and over 900 million without access to clean cooking solutions, Africa cannot afford to leave its oil and gas in the ground. When faced with an energy crisis, Europe has once again turned to coal, and yet Africa continues to be told to abandon its oil and gas. We will make oil and gas in Africa a success and not a cautionary tale of missed opportunity. We will develop and industrialize our economies, we will create jobs and increase revenue, and we will position Africa as a global energy hub, all on the back of oil and gas.
