Despite the crash in global oil & gas prices, we believe that any long-term investment in this sector will remain profitable, as demand for energy for industrial production, household consumption and mobility increases in line with the growing population (2.5 billion, 2050). Put differently, fossil fuels and gas will still play a crucial role in Africa’s development in the next 20 years.
üIn Africa, over 600 million people do not have access to electricity, according to the IEA; we strongly believe that the demand for renewable energy will increase, generating a need to devise more modern and efficient energy solutions.
üAs such, demand for alternative forms of energy – solar and other off grid solutions, will continue to grow and increase market share.
üEnergy companies will also need to focus their attention on being more cost efficient i.e. operating at a low cost, which in turn will drive yield and profitability amongst stakeholders in its value chain.