US Firms Will Win Big From Greater Participation At AEW- Ken McGhee

By Ajong Mbapndah L

There is no better platform than the African Energy Week-AEW for American companies to understand the challenges, realities, mindset, and immense investment opportunities in the African energy sector, says International Social Investment & Community Development Practitioner, Ken McGhee.

McGhee who manages an SME training program known as the Linkar Project funded by African Development Bank and executed by the Mozambique National Oil Company (ENH), says America needs to pay more attention to the potential Africa offers the world in terms of energy supply, energy transition, and invest more time, understanding, and money.

What I see is a culmination of lessons learned, innovations shared, and an unrivaled commitment from NJ and his team that is truly remarkable, Ken McGhee said in his praise of the resounding success of the recent AEW 2024 in Cape Town.

As someone who has attended almost all editions of the AEW, how has it evolved over the years?

As one who has attended most of the editions, I can say that each year AEW continues to exceed expectations in terms of size, scope, and most importantly content! I am continually impressed at the timeliness and relevance of AEW's content and those who participate.

Though this may have been the first year without the actual presence of one African Head of State, the next level of Ministerial representation is most impressive. The decision-makers are in the room and "present at the creation" of new deals, new initiatives, new contacts, and new approaches for the Continent. Today we can clearly see that NJ's dual themes of "end energy poverty by 2030" and "drill baby drill" are now commonly used expressions amongst thousands of African and other global leaders with decision-making power.

Those twin concepts which, more than any other phrases, describe what Africa actually needs now, have become as commonplace as the UN's famous, and well-intentioned Sustainable Development Goals (SDGs). In fact, for the African oil & gas sector, they have become as important as any galvanizing goal from the UN or any other international body. All that came about because of AEW and its outreach.

Literally AEW transforms the city of Cape Twon each year now. For one amazing week, the city and the region are all focused on the twin concepts to end poverty and drill more as essential tools in Africa's overall development. It really matters not if one is talking oil, gas, or even renewables - they all need those twin concepts to thrive, and that is the universal message from AEW.

What I have also seen is the incredible growth of NJ Ayuk and the AEC. When NJ and I first met, he was a participant in some of the earliest oil & gas conference on the Continent. Specifically, we met around the time of Equatorial Guinea’s first such event. NJ was the same active and positive spirit we see now, but back them learning how to really make an impact. He has clearly understood those lessons well. What I see in AEW 2024 is a culmination of lessons learned, innovations shared, and an unrivaled commitment from NJ and his team that is truly remarkable.

What is the message you will be taking back to Americans whose presence at the Forum was timid?

The message is simple, clear, and not even unique! In fact, we have been saying this message for a long time, but now it is even more relevant than before. And that message is that "Africa's time is now!" AEW reiterated that message during the week in Cape Town. The reason why this message resonates so much right now has to do with the global energy situation we all must face. The reason why this message resonates so much right now has to do with the need to address Africa's energy needs today - to greatly reduce the 600 million African without electricity now to bring that to a "net zero" number in the foreseeable future. The reason why this message resonates so much right now is because the rest of the world needs to find new and alternative sources of energy and those opportunities are abundant in Africa. America needs to pay much more attention to the potential Africa offers the world in terms of energy supply and energy transition. And, as such American firms need to invest more - time, understanding, and money - in Africa. AEW provides that forum to help Americans understand, and to take a stand!

For such an important event with big stakes, what do you think could be holding American companies from bigger participation?

I think this year has been a one of caution for many Americans thought leaders and decision-makers. There is so much conflict in the world right now, elections looming in many key countries, and a general sense of doubt about the energy future we all face. These factors surely contributed to some folks not travelling to AEW this year.

There is also a lingering doubt, in some circles, about whether "energy transition" also needs fossil fuels! This, of course, is one of the key themes from AEW that the world needs to hear. When it comes to Africa, another historical factor is that Americans tend to take a "wait and see" Africa approach before making the commitment we see from others such as China, Russia, Europe, and now Brazil.

My hope is that this AEW will help underscore the need for more American involvement in Africa's energy sector. It's great to see the major IOCs and other key American companies continue to support AEW, but we need to see more. The key role that OPEC played at this year's AEW should also be a strong indicator to Americans of the stability and opportunities of the African energy sector in relation to global markets and the global energy mix.

Could you shed some light on the work you are currently doing in Mozambique?

My work is all about Local Content at the most local level! I manage an SME training program known as the Linkar Project. It is currently funded by African Development Bank and executed by the Mozambique National Oil Company (ENH).

The goal of our work is simply put, to help Mozambican SMEs be positioned to win contracts from IOCs, major suppliers, contractors, and the like. Our goal is to identify the SMES, understand their gaps, and provide some level of training and skills development to help build their capacity.

This project is important for the national oil company (ENH) as they seek to maximize opportunities for local business in the burgeoning energy sector of Mozambique. We are also focused on identifying and supporting women and youth-led SMEs to gain a strong foothold within the upstream supply chains.

Currently our project is poised to launch two large trainings next year focusing on provision of ISO certification training for 35 SMEs and a comprehensive SME Capacity Building yearlong training to support 150 SMEs across three key Provinces (Maputo, Cabo Delgado, and Inhambane).

At the same time, we plan to expand the project size and scope to address the growing SME population, linked to the expanding gas market opportunities, in Mozambique.

What potential changes do you see for US- African ties under the new administration?

I must be brutally honest here…I have seen no evidence previously nor have any reason to believe I will see such evidence in the near future of a Trump Administration that is committed to Africa's growth, development, partnership, or support. Such neglect was shown towards the Continent during his previous Administration that I have no foundation from which to be positive.

But I am hopeful. I believe that America needs to do more, not less in Africa and that includes supporting private and public sector projects, initiatives, and investments across the Continent. In that regard, again I refer to the success of the AEC and their ability to work across political lines and with diverse leaders all in support of common goals and objectives.

This is an opportunity for the Trump Administration to make a "deep-dive" into the vibrant African energy markets to find, fund, and support opportunities. There are many which will prove to be mutually beneficial for American companies and investors as well as their African counterparts.

My hope is that the returning Trump Administration will find support for the AEC and AEW, in particular, as key assets in the American government efforts to do more in Africa. I hope Trump will acknowledge that "drill baby drill" is NOT his own unique quote (and it really isn't), but rather the new mantra for the African Continent to end energy poverty and create energy wealth for all. This can be a unique opportunity to open more doors and add more seats to the tables in decision-making rooms across Africa and America.

Next year when the AEW clocks five, do you plan to be there and what will your expectations be?

Absolutely I plan to be at AEW 2025. I think that 2024 was a bit of a transition year for many key stakeholders due to elections, instability, and insecurity generally. Though global challenges still remain, I think there will be more activity in 2025, more deals will be signed, and there will be a push to develop and culminate existing projects.

I think "drill baby drill" now has a new impetus and will only expand its reach in 2025. I hope and expect that AEW 2025 will showcase more new projects, new stakeholders, and new deals - with new players including new Administrations in the US, Mozambique, Namibia, and Ghana to name a few playing active roles throughout.

*Courtesy of November Issue of PAV Magazine