TERepublic November Issue 2021

AFRICAN ENERGY STORIES
Africa Requires $2.8trn Investment to Transition to Clean Energy by 2050 - PWC
Energy experts at PricewaterhouseCoopers
(PwC) have said that African countries will
need an estimated $2.8 trillion
investment to transit from its current energy base
and achieve the global net-zero emission target by
2050.
They stated this at the firm’s 2021 Africa Energy
Review, saying that though transition to clean
energy in the continent would result in loss of
more than $15.2 trillion income source from fossil
fuel, but an estimated five million jobs would be
created in the process.
Speaking at the virtual event, Pedro
Omontuemhen, PwC Africa Oil & Gas Industry
Leader, said that investment in low-carbon energy
systems in Africa lags global pace, adding that
despite global climate finance commitments from
developed economies aimed at $100 billion per
annum, the allocation to Africa falls significantly
short of what the continent requires to meet
global targets.
“The fiscal constraints being experienced across
Africa create a challenge for the continent to
move with pace on its net-zero journey. Private
partnerships, public-private partnerships (PPPs)
and blended finance are becoming increasingly
important and will need to be deployed together
with strong public sector governance and
innovative financing instruments to overcome
these challenges,” he said.
James Mackay, PwC Director, Energy Strategy and
Infrastructure, said:“Ensuring a sustainable planet
is not a cost-benefit assessment, that said: Africa
must carefully consider the economic impact of a
transition away from fossil fuels and associated
revenues in context of the affordable pace of
development and growth of the renewable
energy sector. More than a third of African nations
are very dependent on fossil fuel commodities for
state revenue, foreign currency reserves and local
economic activity. An unfunded and rapid
shutdown of this sector would place significant
fiscal strain and hardship on Africa.
“On the other hand, too slow a transition may see
Africa lag global markets and emissions
reductions targets. Developed economies must
play an active role in Africa to ensure a global winwin
outcome”
On job creation, he said: “The adoption of
renewable energy has the potential to boost
employment opportunities on the continent with
the creation of new skills and skills capacity. This
employment creation is not limited to direct
employment and of relevance to Africa is the
potential boost in non-energy jobs through
broader economic activity in rural communities
where improved energy access through mini-grids
and off-grid solutions will impact economic
productivity.
“Overall, the energy transition in Africa has the
potential to result in total renewable energy
employment of around five million jobs by 2030,
which is a substantial increase from the estimate
of 324,000 currently employed.”
Pedro Omontuemhen, PwC Africa Oil & Gas Industry Leader
FG approves Zero Import Duties for
Vessels, Ships Parts
The Director-General of the Nigerian
Maritime Administration and Safety
(NIMASA), Dr. Bashir Jamoh has
formally announced that the Federal
Government of Nigeria is concluding plans to
grant zero import duties on vessels and ship
parts.
Dr. Bashir revealed this while speaking in a
session at the maiden edition of Nigeria
International Maritime Summit (NIMS).
Jamoh noted that the approval is currently
before the Permanent Secretary of the
Ministry of Transportation, Dr. Magdalene
Ajani, even as the NIMASA boss expressed
optimism that the announcement will be
made soon.
The NIMASA Director General said that the
fiscal policy is long overdue, noting that the
government has made similar incentives for
manufacturers, airline operators, among
other sectors.
According to Jamoh, as buttressed by the
Minister of Transportation, Hon. Rotimi
Amaechi a fortnight ago, there is also a dire
need for the Nigerian maritime sector to be
more united in a bid to advocate for issues of
common interest and beneficial to the
nation.
Meanwhile, the immediate-past Chief
Executive Officer (CEO) of South African
Maritime Safety Authority, Commander
Tsietsi Mokhele stressed that Nigeria should
pick an area of specialization within the
maritime sector.
According to him, Asian nations are leading
various aspects of shipping as Phillippines
lead in seafaring, Singapore a hub for
connectivity via ports, while Japan and China
are among the top three ship owning nations.
He stressed that African nations should start by
exploring their most advantageous areas in the
maritime sector before addressing other areas of
high value for their economies, however, he
opined that the change in trade terms for the
export of Nigerian crude oil from Free On Board
(FOB) to Cost Insurance and Freight (CIF) would
change the significance of maritime to the
nation’s economy.
In her welcome speech, the Chairperson of the
NIMS, Barr. (Mrs.) Mfon Usoro stressed the need
to bring all necessary Ministries together in bid to
get them in sync to adopt a holistic maritime
national strategy.
According to her, a whole government approach
to adopt the maritime industry growth is key to
attaining the anticipated goals of the shipping
sector.
“How can we have Nigerians that own vessels but
choose to use the shipping registries of other
nations? This Summit focuses the attention of
policy makers, regulators and the industry
operators on a critical segment that some
consider the substratum for economic growth,
the centerpiece for commerce, security and
indeed livelihood,” she said.
On his part, the Chairman of Starz Group, Engr.
Greg Ogbeifun said that he was delighted with
the development that imported vessels will enjoy
fiscal incentive of zero import duties.
Ogbeifun also encouraged NIMASA to have
frequent meetings with ship owners and other
stakeholders in the shipping sector after the
Registrar of Ships, NIMASA, Mrs. Nneka Obianyor
stated that the last engagement with
stakeholders was in February 2020.
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OIL AND GAS REPUBLIC I SPECIAL EDITION