Chinese companies commit $1.4 bn for African energy projects
The African Energy Chamber has recently concluded a visit in Beijing where it met with senior officials from the Chinese government, heads of state-owned energy companies, executives and entrepreneurs from the private sector.
September 06, 2019: The African Energy Chamber has recently concluded a visit in Beijing where it met with senior officials from the Chinese government, heads of state-owned energy companies, executives and entrepreneurs from the private sector. Throughout its meetings, the African Energy Chamber secured over $1.4 billion with an intention to invest in Africa's bankable projects in mining, oil & gas, power, and renewables.
During the meetings with top Chinese energy companies and financial institutions, the African Energy Chamber discussed the signing of win-win agreements and contracts that will make energy work for Africa while providing Chinese investors with attractive and rewarding opportunities in Africa.
"China's economic transformation in the last few decades is remarkable," declared Nj Ayuk. "What this country has accomplished is an inspiration for Africa, where nations still need to lift hundreds of millions out of poverty and provide us with sustained economic development for decades. China and Africa share very similar challenges, and the message China is sending us is that if they can do it, so can we."
As LNG demand is growing by the day in China, Africa stands to play a role. In 2018, China consumed 276.6 billion cubic metres (bcm) of natural gas, an increase of 16.6 percent over 2017. In the meetings, the chamber discussed with Chinese companies the need to invest in gas exploration and the need to also work on African initiatives like LNG2Africa which are a win-win for both Africa and China.
"The biggest encouragement for us is that beyond their investment appetite for Africa, Chinese companies are clear about their intention to invest in the promotion of local content and the building of local manufacturing capacities," added Nj Ayuk. In addition to upstream oil & gas and mining projects, key infrastructure financing opportunities in refinery and storage facilities were also discussed.
In light of strong Chinese interest for Africa, and following demands from its Chinese partners, the Chamber will be hosting the first China-Africa Energy Investment Forum in 2020 in Beijing.