Publications

the-status-and-evolution-of-the-nigerian-stock-market

The Report: Nigeria 2016 | Oxford Business Group 

With abundant natural resources and a young, dynamic population, Nigeria has long played an important role on the continent and it has the potential to be a wider global player in the coming decades. The new administration is rolling out an ambitious package of substantial reforms – from privatisation measures and anti- corruption campaigns to security assistance – that it hopes can help overcome a legacy of poor governance. These reform efforts come amidst a challenging macroeconomic background, with drops in foreign exchange and public revenues, lower oil prices and slowing headline growth. 


Source: Oxford Business Group, The Report, Nigeria 2016.


Deal Drivers Africa, 2016 Report

After several years of steadily increasing M&A activity, it seems African deal making has crossed the Rubicon. The continent has firmly entrenched itself into the global marketplace, with both domestic and inbound dealmakers seizing on the opportunities on offer. There were 290 deals in 2015, the highest volume since 2007. This figure coincides with the highest number of private equity deals on Mergermarket record (60). 


Tesla's Powerwall home batteries shine new light on Africa's energy landscape

Africa needs to generate at least 250 gigawatts (GW) of capacity till 2030 to meet current demand growth for electricity.

Tesla’s home storage batteries take renewable energy technologies to new heights, and could be a major boon for Africa’s 600 million energy-deprived consumers.
But for off-grid communities and those at the bottom of the economic pyramid, costs may be prohibitive. With 30% electricity access across Africa, it’s little wonder Tesla’s Powerwall home-storage batteries are being touted as the next big revolution for African energy. Today, Africa needs to generate at least 250 gigawatts (GW) of capacity till 2030 to meet current demand growth for electricity. Currently, there’s only 147 GW of installed capacity in Africa, around twothirds of which is concentrated South Africa. In practical terms, Africa’s total installed capacity is comparable to how much China installs in just 24 months.


Sub-Saharan Africa’s national oil companies have big ambitions but funding remains a challenge

Without a substantial infusion of capital, even experienced African national oil companies (NOCs) will remain largely focused on overseeing licensing for exploration and production (E&P), and managing their domestic oil sectors.

By Rolake Akinkugbe May 2015

Without a substantial infusion of capital, even experienced African national oil companies (NOCs) will remain largely focused on overseeing licensing for exploration and production (E&P), and managing their domestic oil sectors. The more ambitious business of deep-water drilling, complex technical operations and cross-border expansion will remain in the hands of foreign players.

In March, Saudi Aramco concluded a $10 billion standby revolving credit facility deal with 27 international lenders, the largest of its kind in the Gulf region for years. Even revenue-rich Saudi’s NOC needs large pools of capital from abroad.

To view the full article click here


Sub-Saharan Africa's Mining Industry in the Current Global Commodity Climate

This article takes a critical look at Africa's mining industry and explores the challenges and the opportunities in the ever-changing global climate

By Rolake Akinkugbe April 2015

Mining in the spotlight too

Minds have been refocused on sub-Saharan Africa’s (SSA) mining and metals sector since oil prices began their downward climb in June 2014. Only 18 months before, the region’s mining industry had come under heavy spotlight after a series of labour disputes, and worker strikes in South Africa’s mines. Meanwhile, iron-ore, gold and copper prices have been depressed, raising concerns over export revenues for a number of African mineral producers. Should growth in China, which consumes almost 50% of global metal supplies, stagnate, then Africa’s mining sector could be in for a protracted depression.

To view the full article click here


Renewable Energy: Africa's Light at the End of The Tunnel?

Africa’s energy landscape is pretty perplexing. The continent’s oil producers are also amongst the largest petroleum product importers in the world. However new developments present hope for a new course.

By Rolake Akinkugbe March 2015

Energy Deficient

Africa’s energy landscape is pretty perplexing. The continent’s oil producers are also amongst the largest petroleum product importers in the world. On average up to 70 per cent of Africa’s energy consumption is imported, mostly in the form of refined products. Despite accounting for around nine per cent of global oil production, energy access in Africa is limited to less than 20 per cent of the continent’s entire population. The average access to energy for developing countries is 72 per cent. From an economic perspective, power outages also cost the continent a great deal in terms of GDP and economic efficiency. At least 30 countries on the continent experience daily outages, which can account for up to three per cent of GDP in some of the worst affected economies

To view the full article click here

Sub-Saharan Africa Oil Industry Faces Crude Reality

The oil price collapse and the shale revolution will transform the outlook for sub-Saharan oil majors and financiers, from exploration, production and investment to industry consolidation. 

By Rolake Akinkugbe January 2015

The big picture

Brent crude oil prices have fallen by more than 60% since June, in a downward spiral that historically could be one of the most challenging periods for Africa’s oil and gas sector.

During the past four years, the US’s bid for energy self-sufficiency has ruffled sub-Saharan Africa’s (SSA) main producers, principally  Angola and Nigeria. Predictions made a decade ago about rising imports of West African crude – then forecast to reach 25% of total US crude imports by 2015 – into North America, now seem naive in light of the shale oil and gas revolution.

To view the full article click here


Can Gas Compete with Oil in The African Context?

This price gap between crude oil and natural gas creates important considerations for the private and public oil and gas industry across Africa

Global usage patterns for natural gas and crude oil are shifting. The hydrocarbons supply boom in North America in recent years has fueled a new relationship between natural gas and crude oil, every$1 of natural gas can now fetch close to 250,000 units of energy at a rate of $5 per million British Thermal Units (BTU). On the other hand, every dollar of West Texas Intermediate (WTI) crude would only generate under 100,000 units of energy, assuming WTI spot rates are around $96/barrel. The energy content price gap between both commodities is stark.