“NATURAL RESOURCES ARE CRITICAL TO MANY AFRICAN ECONOMIES BUT THE MAJORITY FOCUS SOLELY ON THE EXECUTION AND EXPORTATION OF THESE MATERIALS. THERE IS A NOTABLE LACK OF BENEFICIATION AND VALUE ADDITION TO THE NEW MATERIALS, THEREBY STIFLING THE GROWTH OF DOWNSTREAM INDUSTRIES, WHERE ARGUABLY THE HIGHEST SOCIO-ECONOMIC IMPACT CAN BE ACHIEVED. TO MAKE THE MOST OF THESE RESOURCES, AND TO ENCOURAGE THE DEVELOPMENT OF SUPPORTING INDUSTRIES, WE NEED TO ENSURE THAT THE CORRECT INFRASTRUCTURE IS IN PLACE”
OSAM IYAHEN – Senior Director, Investments (Natural Resources)
Africa has 12% of the world’s oil reserves, 40% of its gold, and between 80% and 90% of all its chromium and platinum. As is the case all over the world, a rich supply of natural resources unfortunately signals a degree of economic inequality within that region or country.
Few African countries process their own raw materials. The real value is therefore added elsewhere, causing much of the profits from natural resources to leave the continent entirely in the hands of foreign-owned companies that pay low rates of tax. Consequently, the local populations benefit little from the resources themselves.
Additionally, developed economies are changing the global energy market and reality in terms of climate change. In the long-term, energy transition readiness will be an important factor for many African countries that have traditionally relied on their oil and gas endowments for economic benefits.
In addition to significant mineral deposits the region has the largest arable land mass in the world, as well as vast timber resources. The continent is gradually seeking to make the most of this abundance by not just exporting raw materials but by building up industries such as downstream processing and manufacturing. This development of course requires adequate supporting infrastructure.
In the medium to long-term, African countries can adapt to changes in the energy landscape, by deploying cleaner energy solutions that aim to balance the continent’s energy mix, thereby improving energy access, increasing economic growth, and alleviating poverty.
AFC acts as an adviser and financier to a number of leading sponsors seeking to undertake important transactions in the mining and oil and gas industries, and associated infrastructure.
AFC is strategically positioned to maximize full value by leveraging its in-house project development capabilities by providing technical expertise and early-stage capital for high-quality projects, in addition to supporting advanced-stage projects alongside experienced project sponsors. AFC’s mining sector focuses on base and precious metals, with an emphasis on EV metals that are pivotal to enabling the ‘green revolution’, as the world transitions from fossil fuels to cleaner energy.
To support Africa’s energy transition readiness, AFC is actively seeking to partner with credible international oil companies to develop gas assets and opportunities for downstream beneficiation across the continent.
AFC’s key natural resources projects include:
- Nouvelle Gabon Mining
- Thor Explorations Limited
- Dynamic Mining Limited
- Danakali Limited
- Alufer Mining
- Aker Energy A.S.
- Prime Oil and Gas B.V.
- Svenska Petroleum Exploration
- Sociede National de Combustives de Angola E.P.