A Paradigm Shift in Infrastructure Investment and Energy Growth- Dietsmann’s CEO Cesare Canevese
November 13, 2023
By Simnikiwe Hlatshaneni
There is a critical need for robust infrastructure development to fuel Africa's energy ambitions, says Dietsmann CEO Cesare Canevese.
Infrastructure development will serve as the linchpin of Africa's energy sector as the continent embraces the promise of recent oil and gas discoveries in nations like Namibia and Mozambique, while actively pursuing renewable energy opportunities. Cesare Canevese, the Chief Executive Officer of Dietsmann, a maintenance and operations service provider working across six emerging African markets, envisions a renewed energy landscape that not only fuels economic growth but also benefits local companies and workers, ultimately making them the primary beneficiaries of this transformative movement.
In the evolving narrative of African Energy 2023, the focus is on fostering opportunities for individuals to engage in the energy sector, underpinned by a commitment to empower local entities. Canevese emphasizes the need for more significant investments in critical infrastructure, including treatment plants, power generation facilities, and expanded electricity distribution networks, reaching every corner where people require electricity for their homes. Although Africa faces several challenges on the path to comprehensive energy generation and distribution, Canevese believes that the region offers immense potential for growth and development.
The surging populations across African nations amplify the demand for energy to meet domestic needs while addressing historical disparities in access to electricity and modern technology. This growing demand coincides with recent discoveries in the oil and gas industries, sparking a race among both local and international industry giants to become part of a new era in energy production on the continent. According to the African Energy Week (AEW) website, as energy demand escalates, Africa's energy sector is poised to secure a more significant share of the global market. It is projected that global hydrocarbon capital expenditure will reach $52.27 billion by 2025, facilitating the extraction of over 17 million cubic meters of natural gas.
Canevese anticipates that hydrocarbon production will continue to dominate energy sector growth on the continent despite mounting pressure on industries to reduce their carbon footprint and transition toward investment in green energy. Nevertheless, local industry players and decision-makers must bolster their expertise and infrastructure to deliver high-quality products that can compete in both African and international markets. The insufficiency of infrastructure development remains a key obstacle on the path toward universal access to electricity and modern technology.
"In terms of electricity, the construction of more power plants is imperative, and it appears that progress is on the horizon. With substantial investments from national companies and the international community, these objectives are well within reach," adds Canevese, emphasizing the critical need for robust infrastructure development to fuel Africa's energy ambitions.
The dichotomy between Eastern and Western investment raises the question: is this paradigm shift reminiscent of another "Scramble for Africa"? While Canevese hopes that African countries can attract investments from within the continent to drive much of the activity necessary to meet their energy demands, he recognizes that this alone may not suffice. Investment and partnerships with entities from the Eastern and Western hemispheres are poised to play a pivotal role in realizing the dream of an energy-efficient and sustainable Africa. “We need more investments in infrastructure, treatment plants, and power generation plants,” Canevese affirms.
Canevese explains, "I believe that technology and investment from Europe, America, or the Middle East can facilitate the smooth commencement of production in a safe and efficient manner. Subsequently, African countries can take control and steer the course of their energy destiny."
Cesare Canevese anticipates that hydrocarbon production will continue to dominate energy sector growth on the continent despite pressure.
African leaders and industry heads have been vocal in their calls for a 'just transition' toward robust renewable energy reforms. Despite Africa being responsible for only approximately 4% of global carbon emissions, a figure dwarfed by Eastern and Western superpowers like China, the United States of America (USA), and the European Union, there is a growing urgency to address climate change.
Barbara Creecy, speaking ahead of the Cop 28 Summit in the Arab Emirates in November, expressed her concerns that African countries might not meet their climate change goals as stipulated in the Paris Agreement by 2025. The Paris Agreement represents a global pact that commits participating nations to robust reforms aimed at curbing the buildup of greenhouse gas emissions responsible for global warming.
The ongoing discussions on Africa's energy transformation are poised to reshape the continent's economic landscape. Through strategic investments in vital infrastructure, the strengthening of energy generation capacities, and fostering international collaborations, Africa strives not only to meet its escalating energy requirements but also to establish a substantial presence in the global energy arena. With a two-pronged focus on hydrocarbons and renewable energy, the African Energy Renaissance is undeniably in progress, with a promising future on the horizon.
