The latest about Africa’s oil and gas opportunities

Overview of Africa’s oil and gas resources

Africa is a continent rich in natural resources. Most African countries are now becoming known in the global market for their exemplary performance in various economic sectors, particularly in the livelihood and manufacturing industries. But the continent also boasts with its deep pockets of oil and natural gas.

The northern part of Africa, for instance, has a well-established oil industry, with large downstream and upstream activities. The problem, however, is that north Africa is threatened with civil and regional conflicts.  West Africa also has a large oil and gas reserve, in which Nigeria and Angola dominate most of the production activities. But there is a problem, as well, the rest of the West African’s oil production are overlooked and has little domestic market activities.

The World Bank and International Monetary Fund are now changing the scene for these African oil sectors through constant infrastructure development and technology improvement. Plus, local governments are continuously seeking help from international partners to tap oil and gas opportunities in other parts of the continent. So far, upstream oil activities are concentrated in Southern and East Africa, including Kenya, Ethiopia, Sudan, Madagascar, Sudan, South Africa, Tanzania and Uganda. And once these oil and gas reserves become a mainstream, it can put Africa in the spotlight and, possibly, dominate within the years to come, according to the United Nations Conference on Trade and Development.

New oil and gas opportunities in Africa

Based from the problems highlighted above, the main solution seen by many leaders and investors is good governance in order to harness the full potential of such natural resources. An article in The African Pulse states that African oil industry lacks governance, accountability and management mechanisms.  

Currently, Africa is a key player and global partner in oil production, exploration and deposit extraction and the continuous discovery of these resources can make Africa a financially-stable economy in the long run. Also, the recent discoveries off the coast of Mozambique and South Africa can change the way African countries import oil and gas from international companies. These could eventually transform the entire region into an oil-independent continent as long as local governments can gather enough funds and create a sustainable management practices.

These new oil and gas discoveries can also boost the social and economic development of Africa through low-cost energy resources and capitalisation of oil funds. Across Africa, natural resource are widespread in the western and southern regions, and most local oil companies can expand their services across the continent through partnership with multinational investors or seek opportunities in their own oil operations.

United Nations Conference on Trade and Development states that the continent’s oil consumption is expected to reach 13 percent by 2015, and the growing consumer demand means that investments need large amounts of capital inflows. By having a sheer institutional governance and set-up, in partnership with local and international companies and investors, African countries can ultimately capitalise on the abundant oil and gas resource they have.

Humphrey Kariuki Ndegwa is a successful African businessman, most known for his flourishing petroleum company Dalbit International. Dalbit takes pride in its ability to produce equal employment opportunities for locals regardless of age, gender, or circumstance.