Invest in Africa (digital - reduced)
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POWER, ENERGY & INFRASTRUCTURE<br />
An oil platform on the Atlantic Ocean <strong>in</strong> Walvis Bay, Namibia<br />
iStock /laranik<br />
Access<strong>in</strong>g capital<br />
While these projects could very well<br />
be lucrative, <strong>Africa</strong> is not the only<br />
<strong>in</strong>vestment dest<strong>in</strong>ation <strong>in</strong> the world.<br />
Around the globe there are a plethora<br />
of energy projects for <strong>in</strong>vestors to<br />
consider open<strong>in</strong>g their wallets for.<br />
As such, <strong>in</strong> today’s low oil price<br />
environment, <strong>Africa</strong>n governments<br />
need to do what is necessary to<br />
attract <strong>in</strong>vestment capital rather than<br />
los<strong>in</strong>g out to global competitors who<br />
ma<strong>in</strong>ta<strong>in</strong> an attractive and welcom<strong>in</strong>g<br />
<strong>in</strong>vestment climate.<br />
It is an <strong>in</strong>vestor’s market and the<br />
fiscal and regulatory regimes must be<br />
realistic and offer a w<strong>in</strong>-w<strong>in</strong> proposition<br />
to both the <strong>in</strong>vestor and host nation.<br />
<strong>Invest</strong>ors will not only look at the<br />
resources to be monetised, and the<br />
economics, but also the ‘above ground’<br />
risks such as regional security, the<br />
political climate, ease of do<strong>in</strong>g bus<strong>in</strong>ess,<br />
fiscal terms, and so on. In short, the<br />
more attractive the terms, the better<br />
the chance an <strong>in</strong>vestor might overlook<br />
any riskier factors when decid<strong>in</strong>g where<br />
to place precious capital.<br />
On the right path<br />
The <strong>Africa</strong>n Development Bank, <strong>in</strong><br />
cooperation with the <strong>Africa</strong>n Union and<br />
other partners, has scaled up its efforts<br />
and cont<strong>in</strong>ue to work with <strong>Africa</strong>n<br />
governments to design and implement<br />
strategies for optimal utilisation of oil<br />
and gas resources to accelerate growth<br />
and development <strong>in</strong> the cont<strong>in</strong>ent.<br />
In 2007 Ghana’s Jubilee Field was<br />
discovered and rapidly brought onl<strong>in</strong>e<br />
<strong>in</strong> December 2010. After the <strong>in</strong>itial<br />
discoveries, the government went about<br />
the bus<strong>in</strong>ess of creat<strong>in</strong>g a long-term<br />
strategy to develop its resources, create<br />
a local services <strong>in</strong>dustry, and develop<br />
its human capital. Indicators of Ghana’s<br />
success <strong>in</strong>clude the number of new<br />
exploration contracts signed and jo<strong>in</strong>t<br />
ventures established with <strong>in</strong>ternational<br />
oil and services companies, along with<br />
a grow<strong>in</strong>g skilled labour pool, all<br />
transpir<strong>in</strong>g <strong>in</strong> under a decade.<br />
This is a good time for <strong>Africa</strong>n<br />
nations to put <strong>in</strong> place the mechanisms<br />
to <strong>in</strong>sulate their oil <strong>in</strong>dustries from<br />
future volatility and secure their<br />
position as a premier <strong>in</strong>vestment<br />
dest<strong>in</strong>ation. <strong>Invest</strong>ors want to <strong>in</strong>vest; all<br />
they need is a good reason to do so. •<br />
<strong>Invest</strong> <strong>in</strong> <strong>Africa</strong> 2017 | 47
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