The African Continental Free Trade Area (AfCFTA) will create unique and significant market opportunities for African countries to leverage each other’s resources to create a common market.According to the African Energy Chamber’s State of African Energy Report 2023, countries like South Africa, Morocco and Ghana could use their auto policies to create a continental demand for electric vehicle production. Zimbabwe, on the other hand, could use its rich mineral resources and proximity to South Africa and the Democratic Republic of the Congo to create a battery manufacturing opportunity. Kenya and Botswana are ideal places to provide in-depth research and developing opportunities by leveraging their lead-acid battery expertise and downstream manufacturing.It is, however, not just in the electric vehicle and battery space where the AfCFTA can be leveraged, but also in the oil and gas sector.Reports indicate that an estimated 428 oil and gas projects were expected to start operations on the continent between 2021 and 2025. While many were delayed due to the Covid-19 pandemic, cross-border initiatives are on the rise.Considering that Africa needs over $100 billion per year to achieve universal access to energy by 2030, a continental approach to the challenge is reasonable.According to Philip McDonald, regional director (Africa), for Castor Vali Africa, a collaborative approach is increasingly being taken in East Africa.“Countries like Somalia have huge potential in the oil and gas sector,” he said, indicating that most of the countries in the region were busy with projects.The construction of the East African crude oil pipeline (EACOP) continues to gain traction despite some environmental opposition. Running a length of 1443km to export crude oil from Kabaale – Hoima in Uganda to the Chongoleani peninsula near Tanga port in Tanzania, this pipeline will handle 246 000 bopd at its peak capacity.In West Africa regional cooperation in the oil and gas sector was also gaining momentum, said Adboulie Jobe, Gambian minister of energy and petroleum.“The West African gas pipeline is a project that has been long overdue. In fact, it needs accelerated effort from countries to bring regional energy connectivity,” he said in Cape Town at a recent event.It is considered a strategic project for the benefit of the entire West Africa.The pipeline between Morocco and Nigeria has reached the stage of detailed technical and engineering studies. It crosses 13 countries in West Africa.Calling for more collaboration Jobe said it was time African countries shared resources for the improvement of the continent rather than taking a silo approach for the benefit of a single country.
