Home> News Reports> The first day of the US-Africa Energy Forum answers the question of "Why Africa and Why Now"

(Above: His Excellency Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons of Equatorial Guinea)

Houston, USA: After the strong opening of the U.S.-Africa Energy Forum, ministers and executives began to discuss ancient investment propositions, "Why Africa, and why now?"

If one thing can be clearly seen from today's keynote speech and panel discussion, it is "Africa is open to business!" The recent regulatory changes and industry restructuring across the African continent are accelerating the development of energy in Africa.

Gabriel Mbaga Obiang Lima, Minister of Minerals and Hydrocarbons of Equatorial Guinea, highlighted the country's efforts to become an energy leader in Africa. Equatorial Guinea may be one of the best examples of U.S. cooperation in energy development in Africa. The President emphasized the importance of U.S.-Africa energy cooperation because he announced that the country has signed an agreement with Chevron and will soon sign another agreement with Marathon Petroleum.

The Honorable Abdirashid Mohamed Ahmed, Minister of Petroleum and Mineral Resources of Somalia, discussed the petroleum law signed in 2020, which “emphasizes the principles of equality, openness, accountability and transparency”. The petroleum law was formulated to help Somalia’s energy regulation align with the wishes of foreign investors, and the country is pleased to see the start of hydrocarbon exploration.

An example of state-owned enterprises promoting the energy transition is the work done by SNEL in the Democratic Republic of the Congo, which aims to provide renewable energy solutions in one of the countries with the least electricity in the world. Earlier this year, SNEL announced an agreement to build two solar facilities with a capacity of 100 megawatts each.

A point that several panelists emphasized throughout the day is the need to adopt a local approach to every step of the energy value chain. Scot Evans, CEO of ReconAfrica, cited his company's exploration work in the Kavango Basin of Namibia as an example; hiring local labor and training local talents can not only better promote the community where ReconAfrica works, but also give back to the community.

Stephen Hightower, CEO of Hightowers Petroleum, asserts that another local approach is through the implementation and development of small refineries with a daily capacity of between 50-500 barrels. These small refineries will enable more rural and remote communities to obtain much-needed diesel and solve several different pain points in the allocation of power generation resources.

The American Petroleum Institute (API) hosted the final panel discussion on the first day of USAEF2021, focusing on global standards and best practices for energy investment. API Global Standards Strategic Assistant Bryan Allen emphasized the need for more free trade agreements between the United States and Africa to simplify the energy licensing process, and emphasized the importance of the narrative of "African cooperation" rather than "African competition".

The virtual delegate pass can still be used to view the meeting in real time. Register now to watch the second day of the U.S.-Africa Energy Forum in Houston, Texas.

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