International accounting firm PwC’s Africa Oil and Gas Review 2020 anticipates that the global transition to renewable energy will accelerate rapidly throughout the coming decade.
It will cause exponential disruption as well as opportunities in Africa and beyond, the review says.
The 10th edition of PwC’s Africa Oil and Gas Review provides updated insights into the African oil and gas industry.
It expands the focus to include the unprecedented disruption caused by the coronavirus global pandemic as well as the biggest global theme for this decade: the renewable energy transition.
The decade of the 2020s will be recorded in history as a pivotal period for the planet, the global economy and the energy and power landscape, the report said.
The Oil and Gas Review reports that there will be significant delays as the end of 2020 approaches and these will affect investments and projects.
There will be an estimated decrease in oil production of 19 percent for the top five African producers for 2020 and a depressed market outlook in general.
In addition to coronavirus induced market disruptions, African countries, many of which are very reliant on oil and gas revenues, have had to divert fiscal resources to supporting healthcare and welfare responses to the pandemic.
The Africa Oil and Gas review noted that in 2019 many of the industry trend lines were heading towards positive territory for the first time in several years.
The pandemic has accelerated the global energy transition with many countries using renewable energy projects to anchor economic stimulus packages and drive economic diversification.
Isaac Otolo, PwC’s Transactions Advisory Services Leader in the East Africa Region, commented: “Over the past decade, we have witnessed a phenomenal global transition towards cleaner energy sources which are environmentally friendly.” (PANA/NAN)
