The global demand for oil has increased sharply in recent years, from about 77 million barrels per day a decade ago, to nearly 89 million per day in 2012. Africa plays a significant role in supplying this demand.
Africa provided 16% of the total U.S. petroleum imports in 2012 and accounts for approximately 11% of the world’s oil supply. Meanwhile, Africa’s production of gas has increased 4% a year over the past decade, and annual net exports of natural gas from Africa are expected to reach more than 230 bcm by 2035. Oil and gas account for a significant part of the revenue of several African states, representing in some cases over 90% of foreign exchange earnings, underscoring the enormous potential for scaling up the efficient development and utilization of Africa’s energy resources.
Although Africa boasts enormous power generation potential from hydro, coal, natural gas, solar and wind sources, it currently faces chronic power supply challenges. The infrastructure deficiency in the continent’s power sector is an impediment to its long-term economic growth and competitiveness. This deficiency presents a huge private sector opportunity to invest in Africa’s power infrastructure – generation, transmission and distribution. The African continent presents the most untapped power market in the world.
CCA’s Energy Program convenes a monthly working group for CCA members to make new business contacts and discuss energy issues such as access to oil and gas exploration and exploitation, public-private partnerships, transparency in managing revenues and national wealth, investment potential, traditional and alternative funding sources, and prospective renewable energy programs.
CCA’s Energy Program also forges linkages between U.S. and African businesses and government officials through its events and other private meetings. In addition, the program partners with the U.S.-Africa Business Center on advocacy, outreach and communications for the Obama administration’s Power Africa initiative.
Recaps on past CCA Energy Working Groups are available by clicking here.
For more information on the Energy Program, contact the Director.