Sahara Group's Tonye Cole mulls the impact of low oil prices

In a recent interview with CNBC Africa, Tonye Cole, the co-Founder and Group Executive Director of the Sahara Group, discussed the impact of low oil prices and the company's outlook for 2017. Cole reflected on the challenges faced by investors in Nigeria in 2016, particularly in the oil, gas, and power sectors, but emphasized his optimism for the year ahead. Despite the tough conditions of the previous year, Cole highlighted that surviving 2016 was a significant achievement in itself, and now the focus is on moving forward and ensuring stability in the coming quarters. One key theme that emerged from the interview was the importance of diversification and efficiency in the face of low oil prices. Cole noted that the decrease in oil prices had forced the company to look inwards, cut out waste, and explore new opportunities for growth. He expressed confidence in the prospects for 2017, predicting a stabilization in Q1 and significant improvement by Q3. The discussion also delved into the challenges plaguing Nigeria's power sector, with many companies struggling under the pressure. Cole acknowledged the crisis but remained hopeful, stating that stakeholders were actively working on solutions to save the sector. He emphasized the need for a holistic approach that addresses issues across the entire value chain, from production to distribution and collection. Furthermore, Cole touched on the company's investments outside Nigeria, particularly in East Africa. He highlighted the potential in the region for growth in distribution, logistics, and energy supply. Despite concerns about scalability and consumer willingness, Cole remained optimistic about the opportunities in East Africa and emphasized the importance of regional collaboration for success. As the conversation turned to the future and the fourth industrial revolution, Cole underscored the importance of power in enabling digital advancements. He emphasized the interconnected nature of power and digitalization, calling for a focus on smaller-scale power generation units to drive progress. Additionally, he addressed the issue of foreign investors, noting the importance of long-term commitment and seeking out experienced partners like Sahara Group. Lastly, the interview touched on the progress in corporate governance and accountability in African governments. Cole expressed optimism about improvements in this area, citing a growing recognition of the importance of corporate governance in attracting investments. He emphasized the role of the private sector in driving change and fostering a dialogue with governments to promote transparency and accountability. In conclusion, Tonye Cole's insights shed light on the challenges and opportunities facing the Sahara Group and the broader energy sector in Africa. Despite the hurdles of the past year, Cole's optimism and strategic approach reflect a commitment to navigating the complexities of the industry and driving sustainable growth in the years to come.