African Energy - Afrikan Heroes

A Few Thoughts for this Generation of Africans in 2021: Be Bold and Cut Out Entitlement, No One Owes Us Anything

December 28, 2020

NJ Ayuk, Executive Chairman of the African Energy Chamber, CEO of pan-African corporate law conglomerate Centurion Law Group

By NJ Ayuk

In 2021 most opportunities in the energy sector and in business in general will go to those who show up and negotiate better deals and get involved in making African resources work for us. Forget handouts, foreign aid and government handouts.

As I wrote in the second edition of Billions at Play: The Future of African Energy and Doing Deals, in 2021, young African dealmakers, negotiators and lawyers will have to embrace a new mindset to win. They will have to mobilize their resources and advocate for important principles of personal responsibility, smaller government, lower taxes, free markets, personal liberty, and the rule of law.

In 2021, African gas projects are going to be in the news. Companies will push to get them going, from Mozambique to Nigeria and from Equatorial Guinea to Tanzania.

If some extremists have their way, none of these projects should happen and our people should be left in the dark. Question we must also ask is how Africans are going to participate when it comes to jobs and contracts. In 2021, we cannot be bystanders. We all can’t afford to.

Africa’s economic recovery from Covid-19 and our global significance in the era of energy transition and attacks on our energy sector must be driven by the talent and entrepreneurship of its people.

Our continent is still struggling when it comes to establishing democratic and trade institutions, we must push for more democracy. Democracy isn’t perfect but it is the best of all political practices and we must embrace it.

I have a few words of advice for this generation, for Africa’s young attorneys, entrepreneurs, rising stars and dealmakers:

Never lose sight of the significance of your work.

By negotiating effectively for African businesses and governments, you can play a huge role in transforming the lives of hundreds of thousands of Africans. Few things in life are more satisfying.

I am proud of the law group I have built, but I consider the work I have done to get justice for and empower African individuals, businesses, and communities among my greatest successes.

I am the first to advise many young people to avoid feeling entitled to anything. No one owes you or us anything. We have to earn it. Our approach and success in oil and gas negotiations stem from our deep preparation and mindset. More of that is needed in 2021.

I have stated many times: you succeed when you look for mentors and let them mentor you. It’s important to have someone who is promoting you when you are not in the room. Next, be stubbornly loyal. Don’t try to pull a fast one because you know more than others! Further, embrace your trials and shortcomings for they teach you to be a better person and lawyer.

I have seen too many young lawyers or rising stars who get a chance to be on a podium, and then tend to spend more time being celebrities than being around colleagues or supervisors.

Many so-called celebrities have not earned a deal and completed one, so avoid having a big head. For me if you have not closed a deal and are not making money, you need to keep your philosophies to yourself. It is crucial to have a strong focus on building your skills because clients and business partners really want you to be good at what you do. Your writing, critical thinking, commercial mindset and in-depth industry skills cannot hurt you. Most clients want to know who is working on their deals, and they do not care about your race or nationality. They want to know you are qualified and can get the job done.

When you finally get a deal done and you get your first bonus or check, do not fall in the trap of buying that fancy car or getting into fast life. You will get broke so quickly. Spend wisely even when you think you have arrived where you need to be. Always think there is more and stay hungry. Look at the Texas oil boys, they are always hungry. They wear their cowboy boots and continue searching for the next big discovery.

Hashtags do not pay the bills. Get off your phone.

Get offline, social media is nice but it isn’t everything, we have seen people who prefer to sit on their phone even during business meetings rather than engage in real business. How do you want a deal when you are busy on your whatsapp group chats? Why have a meeting with someone when you will be on your phone while they are talking? Get out of the room and take the call or send a message. If you decide to work on your Instagram while talking to me, I walk you out of my office or end the meeting. When you don’t get the job or the contract, don’t be so quick on blaming the “White Man” or Racism.

I know this will get the young generation annoyed, but its real. We need to start having a post covid mindset and know we will have to engage again. I am not crazy about Zoom meetings, but we have to do it. Business is not about who had the best tweet two hours ago or who does the best hooting and hollering. Get down on the ground and make money. Do not believe those who tell you money is bad. We know it is bad being broke and we hate being broke. You should never apologise for working hard and making money. To do that, you must be focused and yes, get off your phone.

Commit to work. Pay your dues. Your time to shine will come.

Always ask yourself, “Am I adding value to the firm or the company?” Don’t think you are in the firm to be the labor union representative or the head of diversity.

Do not walk around the firm or even negotiate with arrogance or give off a sense that you are entitled, or that your opinion matters on every subject. You are not owed anything. It is important not to cry over discrimination on every issue, whether it is sexism, racism, or xenophobia.

You beat them with excellence and success. We see it every day and you will be surprised it comes from the same liberals who claim to love all humans and want to save the world. They will love to patronize you and put you in your place. I have experienced it myself. I just work harder, and success follows.

You must understand that building a successful practice or business calls for something not taught in law school or business school or any school: the ability to hustle and deliver on deals. I have always had run-ins with young lawyers because I can be a tough, goal-oriented taskmaster. I have a fierce sense of urgency that many others don’t share.

Working for Centurion is not for the naïve or the fainthearted—we don’t tolerate young lawyers viewing Centurion as merely a job. Everyone has to give their maximum effort all the time.

The truth is, I am harder on myself. I am never satisfied, and I just believe I can win bigger and do the deal better. The most important outcome for me is to have people around me achieve more than they ever thought they could.

Lean in and take the heat for your client or causes you believe in, and for Africa

In 2021, you will have to be visible, be vocal in defending the African energy sector from those that want to end it and you must capitalize on the opportunities that you see. One of the key things you must do in 2021, is take the heat for your clients. I have never had a problem being called an ambulance-chaser in the past. Today I am that ambulance that is being chased and many know I will always stand with them and I built a strategy of taking the heat for them. Don’t let them push on your client or kill your issue. Develop a thick skin and let them hit you. If I can’t take the heat, I have no business being in the kitchen.

I have been pushed, been kicked, sometimes been spat on, lied on, demonized, talked about and even derided in the media. Its does not bother me one bit, I always know I am going to outlast my distractors or competition. In 2020, we made more money than any other year with Centurion Plus, our latest on-demand service. I have also been invited to meet with Presidents, Ministers, CEO’s and even Royals. But I never lost my way.

Never take your eyes off the prize. Be patient, play chess, keep smiling, be ready to take a punch and definitely hit back and do it harder. Maybe a combination of Jabs, Uppercuts and Hooks. That’s going to be you in 2021. Its going to be a fight to stay alive, stay employed, stay in business, stay relevant and stay sane when everything and everyone around you is going crazy.

You are going to be tested. They are going to come after you. sometimes even your own friends and those who laugh with you then stab you in the back. You will be called a traitor to most of your liberal elitist friends who feel entitled, drink latte with soy or almond milk. They sometimes cannot believe that this kid who was their darling and their best boo does not buy into their tree hugging, cry me a river ideology. You and I will have to believe and fight for Africa first, against energy poverty, and for personal responsibility, free markets, limited government and yes we must not be ashamed of being people of faith.

The wisdom and advice my law school mentor and professor John Radsan, who used to serve as the CIA’s assistant general counsel and Ron Walters shared with me hold true for you today: each one of us has a mandate to use our education and skills to impact communities and to promote economic growth and empowerment.

So, yes, seek career success and prosperity in 2021. But, in the end, choose to do good: use your skills to make sure that everyday Africans receive their fair share of the benefits the continent’s natural resources can provide.

NJ Ayuk is Executive Chairman of the African Energy Chamber, CEO of Centurion Law Group

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Germany to Ramp Up Investment in African Energy

August 7, 2020

H.E. Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons of the Republic of Equatorial Guinea

There are indications that a boost in German-African business relations is in the offing post-Covid-19. This much could be gleaned from an exclusive webinar held yesterday, Thursday 6^th August which explored the market dynamics set to shape post-COVID-19 business relations. The webinar titled, “Germany-Africa Economic Relations: Making Deals Post COVID-19” highlighted opportunities for German businesses in Africa’s power production, clean energy, and digitalization and technology sectors; An opening keynote was given by H.E. Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons of the Republic of Equatorial Guinea; Panelists included Ibrahima Mané, Director General for Cooperation & Financing for the Republic of Senegal; Onyeche Tifase, Head of Strategy, Technology & Innovation, Oil and Gas Divison for Siemens Energy; Tim Gengnagel, Deal Accelerator for the Rwanda Development Board; and Kenneth Reed, Managing Director for GEA Group, Southern & Eastern Africa; The webinar was hosted by the African Energy Chamber and Germany Africa Business Forum (GABF), in collaboration with Africa Oil & Power (AOP), and featured moderators Sebastian Wagner, Co-Founder of the GABF, and Anine Kilian, News Editor at AOP.

The panelists sought to mobilize German investment into the African energy sector, establishing clean energy and digitalization as two major pillars of economic and investment cooperation.In recent years, the African continent has shifted to the forefront of Germany’s foreign policy and development agenda, with programs rolled out under the country’s $1.1 billion Development Investment Fund for Africa, which is primarily dedicated to easing the entrance of German businesses into African markets.

Co-hosting the webinar, the Germany Africa Business Forum (GABF) is a private think tank whose goal is to strengthen investment ties between Germany and Africa, co-founded by moderator Sebastian Wagner. In July 2019, the organization announced a multi-million dollar funding commitment to invest in German energy startups that focus on Africa. A prime example of German-African cooperation lies in Equatorial Guinea, which employed two German contractors in the construction of West Africa’s first LNG storage and regasification plant located on the country’s mainland.

“Equatorial Guinea initiated the Gas Mega Hub, in which we are capturing gas from Noble Energy’s Alba and Alen fields, building a pipeline and bringing it to onshore Punta Europa gas processing facilities,” said H.E. Gabriel Mbaga Obiang Lima, Minister of Mines and Hydrocarbons of Equatorial Guinea in his keynote address. “The resources are here. We just need to make sure that we have the technology to transfer the goods. In Equatorial Guinea, there is substantial opportunity for synergy between Equatoguinean and German companies. This is not a country that is uncharted territory, or in which the resources are not there. We already produce oil, gas, condensate, methanol and CNG, and are going to start mining. As a result, to enter the market requires technology of transformations.”

The G20 Compact with Africa (CwA) was initiated under the German G20 Presidency to promote private investment in Africa through improvements of the macro, business and financing frameworks. The efficacy of the initiative has been demonstrated in countries such as Senegal, which enjoys a long-standing partnership with Germany that has mobilized over €1 billion in funding. “Germany-Senegal cooperation is rich in lessons, in terms of a project approach that is focused on the mode of intervention and implementation through Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) and KfW Development Bank, which are focused on technical operation and financial cooperation, respectively,” said Ibrahima Mané, Director General for Cooperation & Financing for the Republic of Senegal. “GIZ intervenes upstream to create pre-conditions for financial intervention, leading to better project preparation. KfW carries out studies before the agreement is signed, and recruits an international consultant to support the implementation. In addition to receiving a grant last year to create a more attractive investment climate for FDI, Senegal is working on a new law for Public-Private-Partnerships. The second phase of the Plan for an Emerging Senegal is focused on private sector development and bringing more clarity and transparency to help investors feel comfortable.”

In Senegal, Germany plays a significant role in power projects through investment in small-scale plants and renewables energy, facilitated by its agreement with the CwA that has supported almost 800 SMEs in the country. “We currently have more than €200 million in undergoing projects, primarily focused on renewable energy, energy efficiency and access to electricity throughout the whole country,” said Ibrahima Mané. “No exclusivity and no exclusion – the energy sector is not dominated by one partner. It is a dynamic sector with many bilateral and multilateral partners. Germany is making a major contribution in the field of renewable energy, principally through power plants of 25 MW implemented in areas outside of Dakar.”

With a recently approved investment law and a top regional ranking in the World Bank’s Ease of Doing Business Index, Rwanda maintains an attractive investment climate for FDI, in part due to strong collaboration between public and private sectors. “The [Rwanda Development Board] has a responsibility both on the policy side to keep the country reforming and improving, and on the project development side, in the promotion of projects and implementation,” said Tim Gengnagel, Deal Accelerator for the Rwanda Development Board. “Having a trusted government partner in that implementation journey is key to not only attracting investment, but also creating the jobs and exports that we are craving for.” The Rwanda Development Board echoed the need for German entrants to the market to be familiar with market size. “One point of concern that we hear from German companies is the small market size,” said Tim Gengnagel. “With many German companies, they try to sell products, which are a good first step into a market. However, if you are investing on the continent and in Rwanda, you are not only investing in a consumer market, but also making a regional investment and an export investment.”

In addition to boosting electricity access and fuelling a clean energy transition, key opportunities for German companies in Africa remain in digitalization, as German businesses possess the technical expertise and know-how to enable knowledge and technology transfer. “Opportunities are immediately available, in terms of smart-grids, automation of metering systems, automation of production lines and adoption of FinTech. On top of that, we are seeing companies invest in training youth and the utilization of digital technologies,” said Onyeche Tifase, Head of Strategy, Technology & Innovation, Oil and Gas Divison for Siemens Energy. “For German companies that are in the high-tech space and have found ways to create a success story in advanced countries, now is the time to transition to Africa. Furthermore, with the African Continental Free Trade Agreement, we are seeing an even greater push toward industrialization. We are hoping for Nigeria to become a net exporter, and this cannot be done without digitalization.”

Despite a wide range of investment opportunities in the African energy sector, limiting factors still constrain the advancement of industrial and manufacturing abilities on the continent, which include local content and skills development. “Why would people consider entering the African market? The better question is, ‘Can you afford to ignore Africa?’ The return on foreign investment is the highest in the world, and the continent also carries a significant availability of land for agricultural production,” said Kenneth Reed, Managing Director for GEA Group, Southern & Eastern Africa. “That said, the advice is to be aware of the differences between African and other cultural norms, as well as the actual market size and how much money you are going to invest. In addition, the shortage of skills, the need to create jobs and the need to enhance skills is critical to the collaboration between German companies and Africa.”

The GABF will, in cooperation with AOP Webinars, host future webinars that address the political, social and economic interdependence between Germany and Africa.

Kelechi Deca

Nigeria and Ghana top Projects Destinations in the Oil and Gas Industry in 2020

December 11, 2019

Nigeria and Ghana has been identified as leading investment destinations in the oil and gas industry in 2020 based on findings and surveys from the African Energy Outlook 2020. The Report which was launched last month by the African Energy Chamber highlighted the importance of increased infrastructure capacity in Africa’s long-term industrial development.

Spotlighting the $12 billion Dangote Refinery in Nigeria and Ghana’s Tema LNG Terminal, the Chamber noted essential role such projects play in revamping the sector and creating opportunities for private sector investors. “At a time when the low oil price is gripping treasury revenues, private capital is developing key oil and gas infrastructure projects which could have a significant impact on the African energy and power landscape over the next decade,” the report said.

On the Dangote Refinery, the Chamber called attention to the current state of Nigeria’s infrastructure and the contribution the project would have specifically as the country works towards tripling its refining capacity to 1.5 million bpd by 2025 as a means to reduce its reliance on fuel imports. To this, the Report said, “the refinery’s tank farms are set out for completion in Q4-19 and they may be used as a depot before the refinery’s production starts. This would provide an immediate increase to fuel storage capacity.”

Ghana’s determination to become sub-Saharan Africa’s first LNG importer in 2020 is set to become a reality as the Tema LNG terminal project nears completion. The project will be able to cover 25 percent of Ghana’s total electricity generation capacity, with gas providing a cheaper alternative to oil.

“The deal with Rosneft enables Ghana to diversify gas imports away from Nigeria, which has consistently failed to provide the agreed level of supply since the West African Gas Pipeline started operating back in November 2011,” the Chamber explained. Adding that the emergence of offshore storage and regasification technology is enabling smaller, lower-risk, rapid LNG solutions that could be replicated elsewhere in the region in countries with substantial gas reserves.

Kelechi Deca