Europe looks to Africa for energy security [Business Africa]

Europe looks to Africa for energy security [Business Africa]

As Europe moves to reduce imports of Russian gas, the continent’s leaders are looking to Africa as an alternative energy supplier.

New agreements have been signed with Algeria, Angola, Congo, Nigeria and others are in the pipeline.

This week, while welcoming German Chancellor Olaf Scholz, Senegalese President Macky Sall said his country was “ready to work” to supply liquefied natural gas (LNG) to Europe, but that “we have to first need to be supported in our participation under better conditions than those currently offered by our partners.”

Senegal is believed to have large deposits of natural gas along its border with Mauritania.

Europe’s interest is good news for African energy producers who have endured years of low prices and a pandemic that has affected demand.

But many gas-rich countries, with the exception of Algeria, face capacity problems and will not easily meet European demand.

In 2020, Algeria was Africa’s top natural gas exporter, followed by Nigeria, Egypt and Libya, according to Statista.

Other producers such as Angola, Equatorial Guinea and Congo do not have the necessary infrastructure to allow them to increase their production.

A European ban on financing new oil and gas projects in Africa has also blocked capital for budding producers like Uganda.

As Europe scrambles to secure its energy supply, there are questions about whether the ban on funding fossil fuel projects will be reversed.

Carole Nakhle is an energy expert and CEO of Crystal Energy. She is our guest on the show to discuss whether Africa can become a major gas player in Europe.

Port wars: Dar thwarts Mombasa

Twelve years ago, Kenya was rocked by deadly post-election unrest. The violence has also blocked rail and road transport to Uganda and Rwanda, halting imports of fuel and essential goods.

As another general election looms in East Africa’s biggest economy, importers and shippers are diverting business from the port of Mombasa in Kenya to Dar es Salaam in Tanzania.

Both ports have invested in expanding their facilities in recent years and offer incentives to importers in an effort to outdo each other.

Foreign Direct Investment (FDI) in Ethiopia increases by 18%

Ethiopia shrugged off a pandemic, conflict in its north and sanctions to register $2.4 billion in foreign direct investment in the first nine months of the current fiscal year.

Much of the investment has gone into manufacturing according to the Addis Ababa National Investment Authority.

Mary I. Bruner