“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 – 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.
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.
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.
There is, for example, high demand for a wide variety of specialized rigs and vessels for both swamp and offshore areas of operations in the midstream sector of the oil and gas industry. In addition, a lack of essential pipeline infrastructure is slowing transportation from field to market. With its wealth of experience in sector development, AFC is strategically positioned to actively participate and lead indigenous companies in this critical space.
AFC’s key natural resources projects include:
- Megadrill Services Limited
- Société Nationale des Pétroles du Congo, Republic of Congo
- Bonny Gas Transport
- Glencore/ Société des Hydrocarbures du Tchad
- Vivo Energy
- Shalina Resources Limited
- New Age (African Global Energy)
- Alufer Mining
- Jubilee Oil Field
Read more about our activity in this sector during the year in our annual report.