A panel session at this year’s African Energy Week (AEW): Invest in African Energies 2024 conference explored the advantages gas brings to the continent as well as its contribution to reducing emissions and attracting investment. With an estimated 625 trillion cubic feet of natural gas reserves throughout Africa, attracting investment in the sector will be critical for industrial development while helping meet the continent’s growing energy needs. International partnerships, joint ventures and technology transfers are poised to play a vital role in driving this strategy forward.

During the panel session, it was noted that while Africa’s natural gas industry offers tremendous potential, the continent faces several key obstacles. These challenges include the need for large-scale investment, the establishment of critical infrastructure and the challenge of creating favorable political and economic conditions to draw in foreign investors.

“We want to increase Africa’s share of global trade,” stated Babajide Bode-Harrison, Senior Manager, Syndication and Agency at African Export-Import Bank (Afreximbank), adding, “It’s important for us to expand and look at the economies; how do we gain economic advancement from the natural resources we have. From a financing perspective, the simple focus is on bankability.”

In terms of financing and international partnerships, the panel stressed that attracting investment will be critical for the growth of Africa’s natural gas sector. It was noted that joint ventures and technology transfers will bring much-needed capital, technical expertise and global market access to the sector, thus enabling African countries to optimize their natural resources.

Denis Chatelan, Head of Business Development at Perenco, said, “All stakeholders in the value chain will have a crucial role to play. We are confident in our technical capacity, and we have confidence in the countries where we operate. Having a strong equity base is the key to success in the global gas market.”

Meanwhile, the panel also highlighted the potential of Africa’s natural gas sector growth in driving socioeconomic development across the continent. The speakers noted the sector’s potential to drive job creation, infrastructure development and economic diversification. By tapping into local reserves, African nations can reduce their dependence on energy imports, strengthen energy security and offer cleaner energy alternatives to their populations.

“We have to have a strategy to develop human resources capabilities,” stated Manuel Barros, CEO of the Gas and Renewable Energy Business Unit at Angola’s national oil company Sonangol, adding, “In terms of the further development of the downstream industry, we are building additional capacity of storage, not only to look domestically, but enabling the conditions to develop and export those products to our surrounding countries.”