Africa Oil Week kicks off in Cape Town with call to maximise Africa’s natural resources

The Africa Oil Week has returned to Cape Town, bringing together industry leaders from the international oil and gas sector to discuss the theme of 'Maximizing Africa's Natural Resources'. The event aims to unite government representatives, energy policymakers, financiers, and dealmakers to create a sustainable roadmap for the responsible development of Africa's natural resources. Shirley Webber, the Coverage Head for Resources and Energy at Absa Corporate and Investment Banking, shared her insights on the evolving landscape of the energy sector. Webber highlighted the merging of the Africa Oil Week and the Green Energy Africa Series, emphasizing the importance of diversifying energy sources. She noted the recent events in Israel and the Gaza Strip that have impacted oil and gas prices, underscoring the need for Africa to transition towards renewables. Despite the current uncertainties, Webber emphasized the significance of gas as a transitional energy source for the continent, with a gradual shift towards renewables. As the industry grapples with the global energy transition, Webber discussed the challenges of striking a balance between investments in traditional oil and gas industries and emerging renewable energy projects. She stressed that financial institutions need to prioritize sustainability, with a focus on building renewable portfolios. Absa CIB has committed significant resources to renewable energy projects, recognizing the importance of a gradual transition towards cleaner energy sources. The project pipeline for Absa CIB reflects the industry's shift towards decarbonization, with oil companies transitioning into energy companies. Each project undergoes rigorous evaluation based on ESG criteria to ensure alignment with sustainability goals. Webber emphasized the role of stakeholders and investors in driving investments towards projects that meet environmental and social standards. Addressing the regulatory framework, Webber highlighted the importance of government leaders creating an inviting environment for new investments in the energy sector. She noted the need for projects to adhere to international standards such as the Equator Principles and emphasized the role of financial investors in driving sustainable development in Africa. When discussing the path to net zero emissions, Webber emphasized the need for a phased approach towards decarbonization. While the ultimate goal is net zero, she acknowledged the complexity of the transition and the potential role of gas in the interim. Webber highlighted Africa's rich mineral resources, including lithium and rare earths, that could drive the continent's transition to renewable energy sources. In conclusion, Webber underscored the need for continuous evaluation and adaptation in the transition towards a sustainable energy future. The complexities of balancing traditional energy sources with renewables, coupled with global uncertainties, require a strategic approach from industry players and policymakers. As Africa navigates its energy transition, collaboration and innovation will be key to maximizing the continent's natural resources in a responsible and sustainable manner.