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Joint ventures mooted in Africa’s local content discussions

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As more energy projects come online in Africa, local content becomes more important. Image credit: Leon Louw for WhyAfrica

Joint ventures mooted in Africa’s local content discussions

Speakers at the Invest in African Energy Forum that took place in Paris, France, two weeks ago, emphasised the role that joint ventures will play in strengthening Africa’s growing energy sector.

At the Invest in African Energy Forum (a precursor to the African Energy Week [AEW] that is scheduled to take place in Cape Town, South African from 16-20 October 2023) many new ideas were discussed and generated as speakers mooted the idea of establishing joint ventures to strengthen the energy sector.

Since early discoveries of oil and gas in Africa, European investors and project developers have been instrumental in driving project developments, providing capital, technology and expertise and working closely with governments to monetise resources.

Now, shifts in dynamics are seeing global stakeholders playing a much larger role in Africa, transitioning from energy players to partners as local content becomes a top priority continent-wide.

According to Florival Mucave, Executive Chairman of the Mozambique Oil & Gas Chamber the investment companies make in education and skills transfer represent part of the local content conditions for companies in a country.

Across the continent, governments have begun to implement local content policies that ensure energy investments translate into tangible opportunities for local communities and businesses.

Government has a responsibility (Joint ventures mooted in Africa’s local content discussions)

Viannet Okume, Administrator Director General, Vaalco Gabon SA says that his government has a responsibility, and it is included in the hydrocarbon law.

Franck Pliya, Senegal Country Director & Mauritania Branch Representative reiterates this notion, stating that “what is important is to have the political will by the players and sub-contractors. You can have all the legislation, but if laws are too harsh, investors will be deterred. You have to find the right balance.”

Beyond legislation the role of training and capacity building is critical. While governments need to have the right laws in place, local players need opportunities to be part of the game, not just as a local partner. The key is not only to make money, but to train others. If you don’t train people who work with you, it will be dead end.

According to David Pappoe jnr, President, African Energy Chamber Ghana there are many opportunities for local players in the energy sector. However, local companies do not always know how to participate, and they do not have access to finance. Governments need to enforce education in this area,” says Pappoe.

Expanding on the role capacity building plays, Mohamed Fouad, Founder & Managing Director, Egypt Oil & Gas and Secretary General, Egyptian Gas Association says that no sustainable growth will happen without capacity building.

“Making energy poverty history by 2030 cannot happen without capacity building. If Africa wants to depend on itself, you need to develop the skills,” says Fouad.

Discussions surrounding local content and collaboration will be further unpacked during AEW 2023. Featuring a lineup of speakers from across the African energy value chain as well as investors and project developers from the global sector, the event will unlock a new era of collaboration in Africa underpinned by local content and a rise in joint venture partnerships.

Joint ventures mooted in Africa’s local content discussions

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Joint ventures mooted in Africa’s local content discussions

 

 

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