Natural Resources and Energy

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.