The CEO of the Ghana National Petroleum Corporation (GNPC), Opoku Ahweneeh Danquah has said the global risk of tightening financial markets coupled with the clear and present danger of capital flight out of African fossil fuel projects is a clear indication to increase the involvement of the African financial sector in securing long term capital for oil and gas projects.
Ahweneeh Danquah who was addressing a session at the 2022 Africa Energy Week in Cape Town, South Africa, said the absence of African national oil companies (NOCs) on the public stock exchange in Africa or abroad is partly to be blamed for the reluctance of African governments to divest ownership of their NOCs.
“… Overall the ease of doing business in major oil-producing countries is sub-par compared to foreign oil-producing nations. In the World Bank’s 2020 ranking there are no major African producers in the top hundred. This is a situation that has to improve,” he said.
“African oil and gas companies should increase their accessibility for equity investments through listings on local and international exchanges. Listings and capitalisation of non-African oil and gas companies on major stock exchanges completely dwarf that of African companies. Currently, no Africa NOC is listed on a public stock exchange in Africa or abroad compared to multiple listings of non-African NOCs…this can be partly blamed on the reluctance of African governments to divest some of their ownership of the NOCs,” he added.
The GNPC boss, however, praised the Nigerian national oil company, the NNPC for planning to launch an IPO in mid-2023
He added, “However, we are seeing the light shining bright. I want to give a call up to my Nigerian brothers; for instance, the Nigerian NOC, the NNPC plans to launch an IPO in mid-2023.”
The 2022 Africa Energy Week is currently underway in Cape Town, South Africa under the theme: ‘Making energy poverty history by 2023.’
The event has brought together many energy ministers across Africa, captains of industry, policymakers and a host of industry players.