Around 32 Delegates from around the continent have descended in Cape Town for a week of stimulating deals, transactions and driving investment possibilities across the continent.
Mining, energy, and petroleum ministers from African nations and the oil industry are attending the Africa Oil Week in Cape Town — a week that drives agreements, transactions, and investment possibilities.
Speaking at the opening of the week-long event, Mantashe said that the ongoing global geopolitical confrontation taking place in Eastern Europe has proven to be detrimental to developing economies.
“Scarcity and high energy costs, increasing food prices, and ever-rising interest rates are commonplace.
Mantashe says that Africa’s oil and gas resources can help accelerate and guarantee the continent’s energy security and drive regional economic development through the processing and beneficiation of petroleum products.
“For a continent that consumes two-thirds of her oil produce and exports the remaining one-third, according to the Africa Energy Outlook 2022 Report, attempts of the European Union to move away from Russian gas imports are an opportunity for Africa’s oil and gas to earn her income through exports into Europe,” said Mantashe.
Mantashe told delegates to be mindful of the gradual withdrawal of major oil companies in Africa’s downstream sector, particularly refining.
Mantashe said Africa could not be an import destination for refined products when the continent is endowed with crude oil, adding that imported refined products risks our economies.
We are at the CTICC for the official opening of the #AfricaOilWeek.
— Gwede Mantashe (@GwedeMantashe1) October 4, 2022
Oil & gas exploitation has been carried out for decades across other economies in the World. These economies are thriving today, and they were built on the back of the exploitation of these resources. pic.twitter.com/tHDQd75DKm
Mantashe told delegates that South Africa had set an ambitious programme to attract local and international investment in oil and gas exploration and production, adding that this programme complements the country’s exploration strategy in mining, aimed at minerals for clean energy technologies.
Mantashe said as a signatory to the Paris Agreement, South Africa is committed to the global agenda to de-carbonise.
“Transition to a low carbon economy must include energy security, regard for human lives and sustainability, job security, and economic growth and development.”
He continued to say that the transition from high carbon to low carbon emission must be managed systematically and that it must include support and use of gas and renewable energy and other energy sources while at the same time scaling down our country’s previous over-reliance on coal.
Mantashe went on to say that intra-Africa trade on oil and gas, including knowledge sharing on technologies that help us towards net zero carbon emissions, is critical.
“Discoveries of significant oil and gas in our neighbouring SADC member countries are encouraging. They will strengthen energy, support other by-products such, like fertilisers, to boost agricultural production.”
Mantashe said he hopes this week will help countries forge partnerships, government-government, and government and business.