African countries need $15bn annual investment to tap benefits from oil, gas

African countries need to invest at least $15 billion annually in the oil and gas sector to harness the resource potential of that industry for sustainable development.

Such strategic investment in the energy sector infrastructure, especially fixing dilapidated refineries, constructing pipelines, and working on upstream projects would help to address the energy needs of the country and address poverty across the continent.

The Executive Chairman of the African Energy Chamber (AEC), N.J Ayuk, who made that call,  stressed that despite the global clamour for transitioning to clean energy, African countries could not be compelled to leave the hydrocarbon resources untapped and wallow in energy poverty.

Mr Ayuk also said Africa was responsible for less than four per cent of global greenhouse gas emissions and was not the cause of the climate problem.

“The wealthy nations that have used oil and gas to drive their economies and develop at the expense of poor nations like Ghana and other emerging countries are the ones that need to decarbonise; Africa needs to industrialise; and we will invest in that sector for our benefit.

“The climate crisis is called global warming and not Africa warming; those who want to transition to green energy can do it, but Africans must be left to do it at their own pace,” he stressed.

He stated this at the Invest in Africa Energies forum in Accra last Monday,

Jointly organised by the AEC and the Ministry of Energy and Green Transition, the forum was meant to explore investment opportunities in the country’s oil and gas sector.

It brought together the chief executives of the country’s energy sector agencies, civil society organisations (CSOs) and investors in the industry.

Crux of the matter

Mr Ayuk said there were 600 million Africans without electricity; 900 million without clean cooking technologies - mostly women- and that is a huge human rights issue that has to be addressed.”

He also said the developed world had no moral right to ask Ghana and other African countries to be radical about the green transition because they promised climate funds for a long time but had failed to keep that commitment.

“The money has not come, so how dare they tell Ghana to abandon her oil and gas and wait for green energy! It is not possible!

“The United States is saying we need to produce more oil and coal; the United Kingdom is giving out 247 licences to produce more oil; China is building coal plants together with India, and you are telling Ghana to be in the dark and say they are making a transition?” he asked.
 

Enormous potential

The Minister of Energy and Green Transition, John Abdulai Jinapor, said with 125 billion barrels of oil; 600 trillion cubic feet of gas; the huge renewable energy potential; and the huge amount of mineral deposits, including green minerals, it was worrying that Africa was still grappling with energy poverty.

In a speech delivered on his behalf by the Deputy Minister of Energy, Richard Gyan-Mensah, the minister said the situation existed because of funding, technology, infrastructure and market constraints.

“It is, therefore, imperative to design and implement realistic and pragmatic approaches to attract the needed capital to develop and harness the full potential of our energy resources,” he said.

Ghana’s prospects

Mr Jinapor said as part of Ghana's ultimate goal to ensure energy security, the country was pursuing policy reforms to attract investments in renewables such as solar and wind and renewable energy forms such as oil and gas.

He said the government was also prioritising storage and transportation infrastructure, as well as innovation to maximise the benefits of hydrocarbon resources and other energy resources.