The loan from the African Development Fund, the Bank Group’s concessional financing window, includes funding from the Transition Support Facility

ABIDJAN, Ivory Coast, September 23, 2024/APO Group/ — 

The Board of Directors of the African Development Bank Group (www.AfDB.org) approved a loan of $67.3 million to Madagascar on 20 September 2024 to implement the first phase of its economic growth-inducing Financial Management and Resilience Support Programme for 2024-2025.

The loan from the African Development Fund, the Bank Group’s concessional financing window, includes funding from the Transition Support Facility.

It is supporting the Malagasy authorities in implementing the priority reforms of Madagascar’s General State Policy (PGE) 2024-2028 and New Energy Policy for 2015-2030

“The programme aims to contribute to the creation of favourable conditions for strong and inclusive economic growth by strengthening economic and financial governance, and improving economic resilience,” said Adam Amoumoun, manager of the African Development Bank’s Country Office in Madagascar.

“It is supporting the Malagasy authorities in implementing the priority reforms of Madagascar’s General State Policy (PGE) 2024-2028 and New Energy Policy for 2015-2030. It will help remedy the investment deficit by increasing the budget, through releasing additional resources for economic recovery, while improving governance in the energy sector,” he explained.

The programme plans to support the roll-out of the Integrated Tax Administration System (SAFI) to modernize tax management, computerize tax operations, facilitate local revenue collection and taxpayer management, and combat tax fraud. It will also support the creation of a national register of beneficial owners of legal entities and legal structures, to identify people controlling businesses and facilitate investigations in case of corruption.

In terms of improving governance in the energy sector, the programme plans to support the action plan established by the JIRAMA (Madagascar’s public corporation for electricity and water services) and improve its short-term technical and financial performance to reduce the need for state support.

As a priority, the programme will support the people of Madagascar, by creating a better regulatory framework for promoting investments and the development of public-private partnership (PPP) projects and better sectoral governance, specifically in energy. This will help improve the business environment and attract investments to sectors that create jobs.

Distributed by APO Group on behalf of African Development Bank Group (AfDB).

As part of the Energy Finance Summit, a dedicated “Financing Angolan Energies” session will unlock new strategies and incentives during the African Energy Week: Invest in African Energy conference

CAPE TOWN, South Africa, September 23, 2024/APO Group/ — 

With a new bid round in preparation, Angola is gearing up to attract investment to its greenfield projects, while simultaneously maximizing production from mature fields. At the African Energy Week (AEW): Invest in African Energy 2024 conference, the Energy Finance Summit will feature a dedicated session on “Financing Angolan Energies,” exploring how Angola can secure the investment it needs to expand its energy sector and leverage its vast oil and gas resources for local industry and global export. 

The Angola-focused session will explore the impact of competitive fiscal terms on unlocking new finance, strategies for attracting upstream investors amid climate change concerns and the role of oil and gas projects in supporting broader investments across the energy value chain. With Justin Cochrane, Africa Technical Research Head of S&P Global Commodity Insights serving as the moderator and speakers from investment firm Gemcorp and Angolan oil company Etu Energias, the session will shed insight into how Angola can secure the necessary financial backing to accelerate energy sector growth and transition.

AEW: Invest in African Energy is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit http://www.AECWeek.com for more information about this exciting event.

Angola’s energy sector is characterized by substantial proven reserves – approximately 9 billion barrels of oil and 11 trillion cubic feet of gas. As part of its strategy to boost production, Angola has introduced new incentives for marginal field development and deployed a six-year licensing round strategy through 2025. Currently, there are 29 blocks on offer. These include five marginal fields, including those in Block 4, Block 14, Block 15 and Block 18; four onshore block opportunities (as part of the 2023 round); 11 block opportunities for permanent offer; and nine offshore opportunities (as part of the 2025 round). These efforts align with the country’s goal of maximizing mature field production, while unlocking the potential untapped reserves and positioning itself as a favorable destination for upstream investment.

Securing investment for large-scale projects like TotalEnergies’ $6-billion Cameia and Golfinho field development in Block 20/11 has been pivotal to driving Angola’s offshore expansion. TotalEnergies and its partners, Malaysian multinational Petronas and Angolan national oil company Sonangol, reached FID for the project earlier this year through a combination of equity investments, strategic partnerships and long-term offtake agreements, which helped de-risk the project and ensure its viability. TotalEnergies is also rolling out its Begonia oil field development in Block 17/06, which reached FID in 2022 and is set to produce 30,000 barrels per day (bpd) by late-2024.

Meanwhile, Angola’s downstream sector is advancing rapidly, underpinned by diverse investment strategies that are fueling the development of several refining projects. The construction of the 200,000-bpd Lobito Refinery, 30,000-bpd Cabinda Refinery and 100,000-bpd Soyo Refinery – all scheduled for completion by 2025 – relies on a mix of international capital, public-private partnerships and innovative finance mechanisms. Financing for the Cabinda Refinery has been underpinned by the Fund for Export Development in Africa, an impact investment subsidiary of the African Export-Import Bank, and included a $335-million project facility secured in 2023. The modular refinery will increase Angola’s refining capacity by a total 60,000 bpd and contribute to Angola’s self-sufficiency in petroleum products. Furthermore, Angola’s bio-refinery initiative at the Luanda Refinery Complex reflects growing demand for cleaner petroleum by-products and could stimulate green finance packages from sustainability-focused banks and lending institutions. By utilizing diverse financing tools and integrating sustainable energy practices into traditional refining projects, Angola can accelerate its downstream sector expansion.

AEW: Invest in African Energy 2024 provides a critical platform for industry players, financiers and policymakers to discuss how to further capitalize on Angola’s energy resources and sophisticated production infrastructure. Moreover, the success of Angola in attracting new investment will serve as a model for financing energy projects across the continent.

Distributed by APO Group on behalf of African Energy Chamber.

A productive, mutually beneficial partnership with regional governments can be the cornerstone of successful energy development, says Ane Aubert, managing director of Equinor Angol

CAPE TOWN, South Africa, September 23, 2024/APO Group/ — 

The key to the successful, long-term development of a country’s natural energy resources can be a government that is willing to partner with energy companies to share risks as well as benefits, and to devise compliance approaches for effective social and environmental transformation.

So says Equinor Angola managing director Ane Aubert, of the company’s decades-long investment in Angola.

Government effort

Equinor is an international energy company headquartered in Norway, but over the years since the company entered the Angolan market in 1991, Angola has become one of the largest contributors to Equinor’s energy production outside Norway.

“The Angolan energy sector has made significant progress over the years” says Aubert. “We recognize the government´s effort to improve the business environment and remain attractive for investors.”

Among these efforts, Aubert notes the recent Presidential decree on incremental production. “It’s a great development,” says Aubert. “It introduces better terms for all oil and gas licenses, including incentives for mature fields and cost recovery for dry exploration wells.”

The Angolan government has also taken steps to enhance transparency and governance in the sector, by joining the Extractive Industries Transparency Initiative (EITI).

“Equinor has been a longstanding supporter of the EITI, and this was a significant move towards greater accountability and public awareness about Angola’s natural resources,” she says.

CO2 reduction

Aubert says the Angolan government’s commitment to enabling sustainable development is expected to stimulate more activity and investment.

“A key element of maintaining and enhancing Angola’s competitiveness is the continuous focus on CO2 reduction measures,” she says. “This is essential, not only for the environment but also for attracting investment in a global market increasingly focused on low-carbon initiatives.”

Energy development in Africa must mean investing in the local workforce, promoting human rights, and being a constructive, proactive partner with authorities

For its part, Equinor is poised to continue its investment. It is set to drill two promising exploration opportunities in its blocks 1/14, and 47 offshore assets, and has plans for new infill and near-field exploration (ILX) wells in its legacy assets over the next five years.

The company made its first Angolan discovery in 1995. Its portfolio today is partner operated and delivers around 110 000 barrels of oil per day – around 10% of Angola’s total oil production.

Significant player

Despite the recent emergence of new frontier discoveries, Aubert is confident that Angola will remain a significant energy player on the continent long into the future. 

“While Namibia is gaining attention as a potential new world-class exploration frontier, Angola continues to hold a strong position in Africa thanks to its established infrastructure, skilled workforce, and still substantial reserves potential,” says Aubert. “This combination, together with the government’s proactive approach, and increased focus on compliance, provides a stable and attractive environment for investors“.

Aubert says unlocking that attractive investment potential must go hand-in-hand with real ESG commitments. Equinor is itself part of several initiatives to boost efficiency and sustainability.

Through CO2 reduction roadmaps with partners and operators, process optimization, energy efficiency, and technology upgrades, the company reduced its CO2 emissions in Angola by 40% from 2018 to 2023.

It has also committed, alongside Sonangol and its operators, to the Oil and Gas Decarbonization Charter to end routine flaring by 2030 and achieve net-zero targets by 2050. It is also part of the Satellite Monitoring Campaign to detect methane leaks across assets.

“We believe it’s possible to lead in the energy transition while continuing our oil and gas activities, by optimizing our operations and focusing on efficient hydrocarbon development,” says Aubert.

Community projects

The company also has numerous community projects aimed at achieving social as well as economic progress.

A project in the southern Huila province aims to support 5 000 people in 10 rural communities affected by droughts and climate change through access to water and clean energy, as well as sustainable agricultural practices.

A biodiversity project supports a national inventory of mangrove ecosystems, which could hopefully lead to the recognition of Angolan mangroves as wetlands of international importance under the Ramsar Convention.

“Energy development in Africa must mean investing in the local workforce, promoting human rights, and being a constructive, proactive partner with authorities,” concludes Aubert. “Continued commitment, innovation, and collaboration across the Angolan industry is crucial to further reducing carbon emissions and achieving a sustainable energy future for all Angolans.”

• Ane Aubert will be a featured speaker at AOW: Investing in African Energy, to be held in Cape Town at the CTICC2 from October 7 – 10. AOW is the meeting place for the global community of African energy stakeholders committed to enabling a prosperous energy outlook for Africa.

Distributed by APO Group on behalf of AOW: Investing in African Energy.