SECTOR EXPERTISE

Natural Resources and Energy

Leverage our experience to unlock value across the continent

We understand the complexities that the Natural Resources and Energy sector faces and offer financial and risk management solutions to support its sustainability and growth.

Heritage2
YEARS OF HERITAGE

150

Africa
PRESENCE IN AFRICAN COUNTRIES

12

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THOUGHTS FROM OUR LEADERS

A continental focus and risk appetite for African projects

The Natural Resources and Energy sector remains one of the most important industries across the continent. It includes businesses operating in the mining sector, metals and minerals, oil and gas, commodity traders, and the various value chains and ecosystems associated with these activities.

While the sector has experienced an increase in negative investor sentiment over the past years, due to increasing environmental, social and governance standards and political and economic instability in certain regions, Africa nevertheless remains an attractive frontier market. The key to unlocking investments into Africa is for industry stakeholders to continue to collaborate responsibly to promote economic growth. The key role of a bank is evolving and now includes also making sure that where we provide funding, the economy and communities benefit.

Understandably, Covid-19 and the subsequent lockdown have impacted mining, oil and gas companies. With estimations that it could take many months before operations return to normality, the financial fallout is significant for mining and oil companies, with the latter reducing their refinery capacity to save costs and preserve cash reserves. Rising production costs, infrastructural challenges, electricity supply and cost concerns are factors placing business leaders under unyielding pressure to deliver superior returns to stakeholders.

Globally, we will see a move towards more sustainable energy sources, with companies focusing on diverse reserve portfolios covering metals, oil, gas and renewable energy sources.

Beyond our extensive Corporate and Investment Banking solutions, our team of sector experts assist our clients across the mining and metals, and oil and gas arenas throughout Africa by providing thought leadership and bespoke solutions.

Our specialist offering includes the structuring and risk mitigation of financial instruments, buy/sell private and public investments delivered by a team of M&A specialists, strong BEE advisory and extensive funding capabilities.

At Absa CIB we have a risk appetite for African projects and focus on building long-term relationships – supporting our clients in achieving their ambitions while pursuing our goal to become the continent’s leading financier in this sector.

Shirley Webber

Head: Natural Resources & Energy

Latest insights

Reviewing the challenges and opportunities that face mining and energy players across the continent.

MINING INSIGHTS

Absa Insights Series: Commodities, with notable exceptions, are having a great year

Supply/demand fundamentals are looking good, for now: A view on 2020 and beyond.

MINING INSIGHTS

Absa Insights Series: It’s slowly but surely getting less risky to fund mining in Africa

Many countries on the Continent are increasingly providing investors with the stability and regulatory certainty they seek.

PROJECT FINANCE

Absa contributes to Africa’s largest project financing deals ever concluded

Absa participates in two Mozambique-based liquefied natural gas (LNG) projects that are expected to exceed US$50 billion.

MINING INSIGHTS

Absa Insights Series: Inflation is not dead. Gold will continue to glitter once fear subsides

“There is just so much money-printing going on in the world right now”, says Bevan Jones, CEO of African Source Markets.

Natural Resources Insights

Achieving high yields in a low yield environment

Africa remains an attractive market for international capital for oil projects and investments.

MINING INSIGHTS

Absa Insights Series: Demand for commodities used in lowering carbon emissions will certainly increase

Commodities (such as vanadium, if the tech improves) have a bright future ahead of them.

ENERGY INSIGHTS

African renewable projects require a stable investment environment

Regulatory certainty and supportive policy frameworks are needed to support investments in renewable energy projects in Africa.

OUR TRACK RECORD

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