African governments need to create stable political environments that encourage investment and ensure doing business is easy – especially in the price-sensitive oil and gas industry.According to Shirley Webber, managing principal – coverage head natural resources and energy at Absa, governments play the most important role in the development of the continent’s resources and reserves as they are responsible for creating the necessary environments for investment to thrive.“We are talking about very clear regulatory environments where there is no prevention on the free f low of capital or the repatriation of profits to the countries where the holding entities are based. We need policies that don’t deter investors, but entice them,” she said.According to NJ Ayuk, executive chairman of the African Energy Chamber, without investments African countries will not convert resources in the ground to revenue and value. “While there is little we can do to inf luence oil prices, there are tangible steps that African countries can, and should, be taking to increase the chances of much-needed investment dollars going into their energy projects,” he said recently.These steps include increased government transparency, passing legislation that protects the sanctity of contracts, and implementing competitive fiscal regimes.
