If the G7 and UK Government announcements become a reality, the energy transition will make most, if not all, of these frontier markets in Africa non-investable. Development banks have traditionally enabled large-scale investments in Africa, and without their support it will be almost impossible to attract private investment in the hydrocarbon sector in Africa. Many also hope that the energy transition will create new opportunities for African nations in sectors outside of O&G, but I believe these too will be limited. Development banks, too, should also commit to continue funding and financing upstream investments in Africa, despite creating global moratoria on hydrocarbon investments in other regions. David McEwing is co-head of energy and utilities and Alexander Sarac is partner, infrastructure projects and energy, both at Addleshaw Goddard.

Source: The North Africa Journal August 04, 2021 23:02 UTC