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The new frontier
Winning in the African oil and gas industry
In Africa, oil and gas has historically been a primary driver of economic growth. Despite an inconsistent GDP growth in the past, the potential of the country’s oil and gas sector cannot be overlooked. Recent oil and gas discoveries, coupled with regulatory changes and fast-growing energy demand from expanding local consumer markets offer significant opportunities across the continent.
This article summarises the opportunities and potential pitfalls for winning in the Sub-Saharan African oil and gas sector – despite there being no universal recipe. However, soft and hard skills, paired with the right timing, and an understanding of market-specific conditions offer investors a higher chance at success. The article identifies eight factors that should be considered by multinationals that are looking to invest and operate in Africa:
- Investing in local partnerships
- Capitalising on local market knowledge
- Understanding local customs and business culture
- Developing local content and localisation strategies
- Creating value beyond compliance
- Portfolio management and diversification
- Embracing digitalisation
- Identifying risks and planning for uncertainty