Africa eyes investments in energy sector

Africa is looking to attract more Chinese investors to the continent's energy sector during an investor forum on Africa's energy sector, scheduled to take place in Shanghai on March 13.

Hosted by the African Energy Chamber, an energy advocacy group based in South Africa, the forum will highlight emerging investment opportunities in Africa, in addition to the role Chinese firms can play in driving projects forward.

It aims to build stronger China-Africa relations, while opening new avenues for Chinese producers, investors and equipment suppliers to expand their footprint across the continent.

During the visit to China, the African Energy Chamber will meet with government officials, entrepreneurs, and state and private companies to encourage greater collaboration between Africa and China across sectors such as oil and gas, mining, and renewable energy, the chamber said in a statement.

NJ Ayuk, the executive chairman of the African Energy Chamber, said the continent is wide open for energy business with Chinese companies, especially with the G20 coming to Africa this year. He added that the African Energy Week, to be held in Cape Town, South Africa, from Sept 29 to Oct 3, will play a leading role as the home of G20 Africa energy investments.

"We continue to encourage innovation and investment in our energy sector and encourage African states to move faster on creating a business climate where businesses of any type and size can grow and thrive, in our continent," he said.

Ayuk said China has proven to be a strong partner for Africa. "From upstream oil and gas projects to downstream infrastructure developments to renewable energy, power facilities and transportation corridors, Chinese firms are eager to support African development," he said.

The chamber said fuel, mineral products and metals represent three-fifths of Africa's exports to China.

Even as the African players seek more Chinese investors, Chinese exploration and production companies are already showing interest in increasing investments in the continent.

In East Africa, the state-owned China National Offshore Oil Corporation is developing the East African Crude Oil Pipeline alongside TotalEnergies and the respective national oil companies of Uganda and Tanzania.

The China National Petroleum Corporation, or CNPC, is also investing heavily in upstream oil and gas projects. These include the Coral South Floating Liquefied Natural Gas development in Mozambique. The CNPC also signed a $400 million crude oil supply agreement last year with the government of Niger.

"Through the Belt and Road Initiative, China is encouraging further participation by Chinese equipment suppliers and infrastructure developers in Africa," the chamber said.