Chinese investment boosts African energy sector

Chinese foreign direct investment (FDI) in Africa surged to $21.7 billion in 2023, largely driven by initiatives like the Belt and Road. To leverage this surge in investment, the African Energy Chamber (AEC) is visiting China to explore new opportunities in Africa’s oil and gas sectors.

Led by AEC Executive Chairman NJ Ayuk, the delegation will engage with Chinese officials and business leaders to discuss investment opportunities and collaborative projects. Chinese energy giants such as CNOOC, CNPC, and Sinopec are increasing their involvement in Africa, focusing on upstream exploration and infrastructure development.

Notable projects include Wing Wah’s Bango Kayo project in the Republic of Congo, which aims to improve gas processing and production. In Angola, China has invested nearly $14 billion over the past decade, with ongoing initiatives like the Lobito Refinery and new opportunities in Block 24.

CNOOC’s investment includes the $5 billion East African Crude Oil Pipeline project and exploration activities in Tanzania, South Sudan, and Gabon.

Ayuk emphasises that as Africa’s pipeline of oil and gas projects expands, Chinese investors will play a crucial role. The AEC’s visit precedes the African Energy Week conference in Cape Town, which will connect Chinese investors with African energy opportunities and foster new partnerships.

Attribution: APO Group Newsroom

Subediting: Y.Yasser