The leadership driving growth in Africa’s oil & gas sector

The oil and gas industry in Africa is facing a period of unprecedented volatility amidst global uncertainty. Recent developments in the market, including tariff-induced recession fears and OPEC production increases, have significantly impacted the price of Brent crude, causing it to lose more than 8 percent since Trump's Liberation Day tariff announcement on April 2nd. To gain insights into what these developments mean for businesses in Africa, CNBC Africa sat down with Taelo Mojapelo, the CEO of BP Southern Africa. As the CEO of BP Southern Africa, Mojapelo highlighted the challenges and opportunities that the current market conditions present. He emphasized the need for resilience and agility in response to the volatility in oil prices, which calls for a different type of leadership to navigate through these uncertain times. Mojapelo acknowledged that the policy decisions of governments have a significant impact on the oil industry, affecting the macroeconomic landscape. One of the key themes that emerged from the interview was the potential for Africa to leverage its energy-rich resources to negotiate favorable tariff arrangements and drive economic growth. Mojapelo emphasized the importance of public-private partnerships and investor-friendly policy environments to unlock investment opportunities in the region. He stressed the need for governments to create a conducive environment for businesses to thrive and highlighted the significance of speed and clarity in decision-making processes. BP Southern Africa's strategic focus on growing upstream, investing wisely in the transition, and expanding downstream positions the company to capitalize on opportunities across the continent. Mojapelo highlighted the company's investments in Egypt, Mauritania, Senegal, Angola, Namibia, Mozambique, Nigeria, and Ghana, underscoring BP's commitment to sustainable energy development. Furthermore, Mojapelo emphasized the role of the Africa Continental Free Trade Agreement (AFCFTA) in facilitating trade and collaboration within the oil and gas sector. He pointed out the importance of regional cooperation in addressing Africa's energy deficit and underscored the need for companies to work together to harness the continent's energy resources effectively. In conclusion, Mojapelo reiterated BP's commitment to Africa, citing the region's vast potential for upstream growth and downstream expansion. He emphasized the company's strategic focus on high-return investments and resilience-building measures to navigate the evolving energy landscape. As Africa seeks to capitalize on its energy resources and drive economic growth, the collaboration between governments, businesses, and stakeholders will be crucial in shaping the future of the oil and gas sector in the region.