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.

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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.

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Absa Insights Series: The future of renewable energy is bright

The untapped potential of Africa’s treasure trove of natural wealth presents its beneficiaries with a prosperous future, if exploited.

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Absa Insights Series: Coal to gas shift – a major step toward energy stability in SA

The market exists and, so does the technology – the question is, who is capable of operating energy storage in South Africa?

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Absa Insights Series: Energy is the gatekeeper to a prosperous future

Tackling Africa’s energy crisis starts with policymakers and evidence shows that they’re not moving fast enough.

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Absa Insights Series: The race to win the battle of energy storage is on

Wherever there is a problem, there is a solution and in the energy sector, a solution is an opportunity

MINING INSIGHTS

Sustainable Energy: A fascinating dynamic for the resources sector

Read the article by Shirley Webber that provides key trends that finance and due diligence teams will be monitoring in 2021.

MINING INSIGHTS

M&A activity will be all the rage for resources in 2021

Read Craig Webber’s thoughts on how the resources sector is at the start of a commodity super-cycle in 2021.

MINING INSIGHTS

Why mining houses are turning to IPPs to fund their electricity needs

Read insights from our Project Finance and Resources Head, Theuns Ehlers on why mining houses are turning to IPPs to fund their electricity needs..

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