First Energy Africa Appoints Senior Manager to Keep Pace with Energy Changes
Ahmed Salem
Calgary-based First Energy Africa Oil has appointed senior capital markets expert Simon Akette and energy analyst Frederick Kozak to its board of directors, strengthening its leadership position amid the rapidly changing energy sector in Africa in a fast-paced investment environment.
These appointments come at a time when oil and gas companies across the continent are reshaping their financing strategies, as traditional Western lenders reduce their support for fossil fuel projects.
Africa’s energy sector is undergoing a radical transformation in the mechanisms for financing oil and gas development, as access to traditional bank financing has become increasingly limited due to growing environmental pressures.
While traditional sources of funding have declined, industry leaders emphasize that the continent continues to attract significant investment by adapting to new investor expectations and focusing on political stability and long-term good governance.
$41 billion for African oil exploration
According to the African Energy Chamber, Africa continues to attract nearly US$41 billion of global exploration spending, underscoring investors’ continued interest in the continent’s resource potential despite evolving financing dynamics.
Akit, who has raised more than $5 billion in equity and debt financing throughout his career, says that African energy companies are increasingly turning to private investors, international investment funds, and regional financial institutions as traditional banking channels narrow.
Akit adds: “Getting financing from the traditional banks we relied on became more difficult. So companies had to look for other sources, from private investors, international funds, and local banks. Finding financing for African energy projects wasn’t a big problem, but to convince these new investors to agree, we had to be more flexible with regard to valuation.”
Balancing investor returns and national interests
Kozak, a professional engineer and former oil and gas research analyst with over 40 years of experience in African and South American resource markets, believes that African countries can significantly increase production while ensuring that citizens benefit from their natural resources, provided that governments strike the right balance between financial competitiveness and national development.
Kozak adds: “Guyana’s lesson is very clear: a country should not give up its resources, and the development of future discoveries should be sensible for the country, so that it provides jobs, creates industry, and contributes to the education of the country’s workforce.”.
Tax systems to encourage exploration
He stressed the need for governments to establish tax and royalty systems that are attractive enough to encourage exploration while delivering fair returns for both investors and host countries.
As competition for global investment intensifies, the consensus among industry leaders is that building long-term institutional trust – rather than relying solely on abundant natural resources – will determine which countries will succeed in converting underground reserves into lasting economic benefits.
