Earth Finds

Earth Finds

Local Content To Fire Up Africa's Economic Recovery

The African Energy Chamber held its first meeting with its Local Content Committee recently, placing local content development at the core of its activities. 

With several established markets like Nigeria or Angola and frontier energy markets such as Senegal or Uganda, the oil sector supports several of Africa's economies. As a result, the African local content has become a key priority for government, regulators and industry stakeholders.

Issues around the perceptions and understanding of local content dynamics were major topics of discussion. Key points put forward included the need for African governments and companies to develop better implementation of local content policies and come up with new approaches putting entrepreneurship and capacity building as priorities.

From financing African starts ups, SMEs and companies to promoting an enabling business environment, it was agreed that African governments and regulators need to rise up to the task and provide for better conditions and environments for African entrepreneurs to thrive.

Established African energy markets such as Congo Brazzaville, Equatorial Guinea or Gabon are still missing a pool of strong local companies across the value-chain, and especially in upstream. Despite producing oil and gas for decades, their environment has remained until now unfavorable to the nurturing of entrepreneurs in oil & gas, especially because of a lack of domestic financing.

The regionalization of the African content was identified as a key trend for the short and medium-term. With the roll out of the African Continental Free Trade Area (AfCTFA) and upcoming first oil and gas in many African markets, the potential to have local content move away from a pure international-local perspective is real.

This is especially an opportunity for local companies within established markets, be it Nigerian companies regionalizing the oil & gas content or South African and Kenyan companies regionalizing content within the renewable energy space. African companies have the means and opportunities to create regional ventures and partnerships taking the African content development to a new level, and must be seizing them.

Finally, inclusion in the workforce is set to become a major focus for the Chamber and its Committee, especially when it comes to promoting youth and women inclusion in the extractive industries. A sustainable African energy industry will only be as strong as it is inclusive, and better mechanisms and policies need to be put in place to ensure African women and youth can build successful careers in the sector.

In that regard, upcoming producers such as Senegal, Mozambique or Uganda have a unique opportunity to truly innovate as they develop their own approach to capacity building and local content development.

As the COVID-19 pandemic further increases the need for localizing value chains in Africa, local content development is set to become even more important for all industry stakeholders. Its success will ultimately depend on the nurturing of capable and patient African entrepreneurs able to raise capital and engage regionally with the right partners to build successful ventures. In such a journey, cooperation with international companies, but especially amongst African entities, will be crucial.

  • Published in Africa
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Kariya Energy Set To Acquire Oil And Gas Assets In Various African Jurisdictions

Kariya Energy has announced that it will enter into various definitive agreement to acquire upstream and midstream oil and gas assets in African countries.

Kariya Energy's technical and financial strength puts it in a position to bring Canadian and American ingenuity into the growing oil and natural gas market in Africa.

Kariya Energy and its management team's engagements and experience with various deep and shallow water projects in Mozambique, Nigeria, Senegal, Congo DRC, Congo Republic and Gabon makes these countries great investment possibilities.

After spending 16 months reviewing data from various IOC's, Kariya Energy will be pursuing acquisitions of various exploration and development plays either through Farm-in deals or operatorship through risk service contracts, or direct negotiations with sovereign governments.

Kariya Energy will continue with its current and ongoing support by providing technical, financial, and operational support for oil and gas companies currently operating in Nigeria, Congo and Gabon.

Kariya Energy's strategy has focused on the innovation and evaluation of new opportunities for resource extraction with great technology that has produced results.

Kariya Energy will pursue profitable small-scale LNG projects across Africa, a niche that its leadership has been skilful in building and making it profitable and scalable, boasting significant potential across the African market.

With its technology, Kariya can turn around African small-scale LNG and work with partners in addressing off-grid power generation for industrial and residential needs in remote locations and deal with issues around energy poverty.

  • Published in Africa
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APICORP Posts $54.8m Net Profit In First Half Of 2020

Gross operating income at USD144.7 million and net income at USD54.8 million despite adverse global conditions; Balance sheet grew by 10% to reach USD8.1 billion; APICORP launched a USD500 million countercyclical support package towards easing the financial pressures of the COVID-19 pandemic and oil price fluctuations in the region.

The Arab Petroleum Investments Corporation (APICORP), a multilateral development financial institution, announced its half-year results for the six months ended 30 June, 2020. Gross operating income for the period stood at USD144.7 million while net profit reached USD54.8 million. While down from the corresponding period last year at 20% and 22%, respectively, the net profit results are notable under the current market conditions due to the COVID-19 pandemic and oil price fluctuations. The revenue was mainly affected by the decrease in dividends from portfolio companies as well as revaluations in the equity investments portfolio due to the pandemic.

Income from APICORP's Treasury and Capital Markets rose to USD60.4 million, a 38% increase compared to the corresponding period of last year. Income over LIBOR from Corporate Banking for the period remained the same as compared to the first half of last year, reaching USD50.3 million. Moreover, the Corporation maintained its annualized efficiency ratio at 25.6% for the period, the same as for the 2019 financial year.

Over the period, APICORP's balance sheet grew 10% to reach USD 8.1 billion, due in large part to the growth in the size of its Treasury and Capital Markets portfolio which was funded mainly by the issuance of a benchmark USD750 million bond in June 2020. This has contributed to APICORP's readiness to fund its future business needs. APICORP also further bolstered its financial sustainability by increasing the share of its liabilities whose maturity is beyond two years to 45% of its total liabilities and shareholders' equity, up from 40% in December 2019.

Commenting on the announcement, Dr. Ahmed Ali Attiga, Chief Executive Officer, APICORP, said: "The results in the first six months of 2020 are a testament to the resilience of APICORP in the face of a tough global business environment. Notwithstanding the triple crisis of COVID-19, oil price volatility and economic downturn, APICORP continued to go from strength to strength, further bolstering its financial position and diversifying its portfolio as it continues its drive to support the energy transition in the region. This includes a historic callable capital increase, a highly successful benchmark bond issuance, a USD500 million countercyclical support package, being assigned a second rating of 'AA' with a stable outlook from Fitch, as well as forging new partnerships with other leaders in key projects within the energy space."

"We are looking forward to the coming period for a gradual recovery in our operating environment and the new opportunities it will bring. As the trusted financial partner to the MENA region's energy industry, we will continue to support our Member Countries and partners to alleviate the impact of COVID-19, with a focus on sustainable impact-driven energy projects and activities in the region," Dr. Attiga added.

Dr. Sherif Ayoub, Chief Financial Officer, APICORP, said: "The robust financial and risk metrics, as well as profit-generating ability during challenging times of the first half of 2020, demonstrate APICORP's ability to navigate unprecedented economic challenges. In particular, the liquidity metrics have shown tremendous resilience to withstand market shocks due, in part, to our deep and diverse funding base, while the capital adequacy ratio of 29.2% reflects the high-quality nature of our portfolio."

Highlights from 1H2020

Highlights from the first half of the year include a landmark increase in APICORP's callable capital to USD8.5 billion, as well as the largest-ever increase in authorized capital and subscribed capital to USD20 billion and USD10 billion, respectively.

APICORP was assigned an 'AA' rating with a stable outlook by Fitch and had its 'Aa2' rating with a stable outlook affirmed by Moody's, becoming the only financial institution in MENA currently to hold these two ratings. This is a testament of APICORP's ability to execute its important public mandate in the strategic and vital energy sector within its Member Countries, and beyond. Moreover, it reflects the multilateral's strong financial fundamentals and resilience despite current economic and market conditions.

APICORP launched a USD500 million countercyclical support package in April 2020 aimed at easing the financial pressures of the COVID-19 pandemic and oil price fluctuations on the region's energy sector. The package is being deployed to support sustainable impact-driven projects by extending funding for projects and working capital within various energy sub-sectors, as well as expanding trade finance support to its Member Countries to reduce the fiscal and current account pressures caused by current market conditions.

APICORP issued a benchmark USD750 million dollar-denominated bond in June which attracted robust and diverse investor demand. At 1.46%, the five-year note's fixed cost of funding was the lowest in the history of the Corporation.

APICORP acquired a 20% equity stake in Jordan Wind Project Company, owner and operator of the Tafila Wind Farm, the first utility-scale wind farm in MENA. The acquisition, the Corporation's first equity investment both in Jordan and in a wind farm venture, will contribute to wider deployment of the region's vast renewable energy sources to enable wider access to modern cost-effective electricity to millions of people.

On the financing side, the Corporation provided USD40 million in financing to the USD245 million state-of-the-art Dammam Independent Sewage Treatment Plant (ISTP), the first ISTP in Saudi Arabia, a key project that will help underpin the sustainability of the national utilities network. Besides, boasting world-class and energy-efficient facilities, the project is expected to create job opportunities for Saudis and support overall sustainable development within the Kingdom.

  • Published in World
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Kabira Country Club Continues To Shine With Tranquillity, True African Style

In the midst of global uncertainty due to COVID19 pandemic, Kabira Country Club has used the force lull in the hospitality industry to be innovative and creative in the products they offer to their clients.

Located in posh Bukoto area, Kabira Country Club suites are the addition to the wide range of accommodation services. And the hotel is encouraging its clients to make ‘Kabira Country Club Suites your Home Base.’

The suites are a true description of absolute tranquillity and they give you a feel of African beauty and style. In its true nature, the hotel is committed to keeping a clean and hygienic environment.

“You have not lived until you've experienced a proper night's sleep at The Kabira Country Club Suites. Extra length beds, percale linen, streamlined down duvets, block out curtains and all,” a manager said of what they are offering.

Adding: “Because in your dreams every detail matter. We are now offering special discounted packages for all your scientific events like Weddings, Engagement parties among others,”

The Pub Bar, the hotel’s flagship bar has been renovated and redecorated to give it a new feel and touch. This means that you don’t have to get out of the hotel to enjoy a drink with family and friends.

The Pub Bar serves alcoholic beverages such as beer, wine, liquor, cocktail and other beverages such as mineral water and soft drinks.

As a hotel, Kabira Country Club, a full-service hotel, offers elegance and comfort in a relaxed atmosphere in Kampala.

With stunning views of the greater Kampala cityscape, Kabira Country Club has a  world-class restaurant, gymnasium, accommodation,  swimming pool and assortment of indoor sports facilities.

In the midst of global uncertainty due to COVID19 pandemic, Kabira Country Club has used the force lull in the hospitality industry to be innovative and creative in the products they offer to their clients.

Located in posh Bukoto area, Kabira Country Club suites are the addition to the wide range of accommodation services. And the hotel is encouraging its clients to make ‘Kabira Country Club Suites your Home Base.’

The suites are a true description of absolute tranquillity and they give you a feel of African beauty and style. In its true nature, the hotel is committed to keeping a clean and hygienic environment.

“You have not lived until you've experienced a proper night's sleep at The Kabira Country Club Suites. Extra length beds, percale linen, streamlined down duvets, block out curtains and all,” a manager said of what they are offering.

Adding: “Because in your dreams every detail matter. We are now offering special discounted packages for all your scientific events like Weddings, Engagement parties among others,”

The Pub Bar, the hotel’s flagship bar has been renovated and redecorated to give it a new feel and touch. This means that you don’t have to get out of the hotel to enjoy a drink with family and friends.

The Pub Bar serves alcoholic beverages such as beer, wine, liquor, cocktail and other beverages such as mineral water and soft drinks.

As a hotel, Kabira Country Club, a full-service hotel, offers elegance and comfort in a relaxed atmosphere in Kampala.

With stunning views of the greater Kampala cityscape, Kabira Country Club has a  world-class restaurant, gymnasium, accommodation,  swimming pool and assortment of indoor sports facilities.

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