Search for oil and gas buoys Africa

The search for oil and gas on the African continent is intensifying, says James Barrow, underwriting manager, general & commercial guarantees division for Lombard. “Countries are selling exploration rights in the hope they can tap into this valuable commodity.” There is no doubt that Africa is booming and companies are taking notice, says Barrow. “There has been a large move for businesses to set up operations north of South Africa. This is not only for logistics providers, but also in the construction, manufacturing and retail sectors,” he says. ”The African market seems to be opening up, with many of the states not only opening up to trade, but also promoting investment into their countries.” At the same time there has also been a notable slowdown in the South African economy, which has meant that many companies are looking to markets to enhance their income – and where better to look than towards the rest of Africa. According to Barrow activity in the mining sector - especially in the oil and gas industry - remains the most dominant. “Mining has always been a large export product for these markets. The need to get products and equipment into these mines will remain important,” he says. “The ability of these countries to enhance their economies by creating value-add products and services is foreseen to be a focus in the near future.” Barrow says although there has been a lot of focus on improving infrastructure in recent years there is still a lot more that needs to be implemented in order for trade to f low efficiently. “The vast size of Africa, its relatively untapped market, as well as the differentiated nature of each territory allow for a gap for many companies willing to invest the time in these markets to really assist their clients to meet their goals. There are many opportunities that can be exploited in Africa currently and in the near future.” INSERT & CAPTION Many of the states are not only opening up to trade, but also promoting investment into their countries. – James Barrow