Algeria’s state oil company Sonatrach and energy major ExxonMobil have signed a deal to develop two major gas fields in southern Algeria’s Ahnet and Gourara basins. The agreement, signed by Sonatrach’s Chief Executive Rachid Hachichi and ExxonMobil’s Head of Exploration John Ardill represents a milestone in Algeria’s energy sector, highlighting substantial progress and newfound opportunities for investment. Both parties will prioritize technological advancements alongside the adoption of best sustainability practices and environmental protection measures.

As the voice of the African energy sector, the African Energy Chamber (AEC) strongly supports this agreement and its role in fostering collaboration between international oil companies (IOC) and African nations. Such partnerships are vital for unlocking Africa’s vast energy potential – a focus of the upcoming African Energy Week (AEW): Invest in African Energy in Cape Town from November 4-8.

AEW: Invest in African Energy is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit www.AECWeek.com for more information about this exciting event.

Algeria, a key gas exporter to Europe, is strategically positioning itself as a player in the global energy market through the facilitation of collaborations with IOCs. The anticipated synergy with ExxonMobil is set to bolster Algeria’s capability to address escalating energy needs. In 2022, Algeria led Africa in natural gas production, reaching a record 132.7 billion cubic meters. The country’s output continued to rise, exceeding 136 billion cubic meters in 2023, with natural gas contributing two-thirds of its total oil equivalent production. Through comprehensive exploration campaigns and targeted initiatives, the nation aims to unlock untapped reserves, fostering partnerships and driving sustainable development across its energy sector.

Algeria’s proactive engagement with IOCs and utilization of technological advancements position it to effectively leverage its abundant natural resources to meet the increasing energy demands of both domestic and international markets. These developments are encouraged by the nation’s Hydrocarbon Law, implemented in 2019, which aims to simplify fiscal terms to entice investment and accelerate exploration efforts. In addition to ExxonMobil, these measures have enticed other players to invest. Multinational energy company Chevron is showing interest in tapping into Algeria’s gas-rich Ahnet, Gourara and Berkine basins, while Indonesia’s national oil company Pertamina plans to invest over $800 million in the Menzel Lejmat Nord block. Pertamina hopes to drill 12 oil wells in Block 405a. Additionally, TotalEnergies signed an MoU with Sonatrach last month to develop gas resources in the North-East Timimoun region, focusing on cost reduction and emissions management.

Meanwhile, Algeria is set to invest $50 billion in oil and gas projects by 2027, aiming to boost production from assets like the Hassi R’Mel gas field and bring new developments online. Sonatrach has recently initiated phase two of the southwest gas project, launching three key fields – Hassi Ba Hamou, Hassi Tidjerane, and Tinerkouk.

Algeria’s strategic approach to develop its oil and gas resources will be complemented by ExxonMobil’s extensive experience and longstanding commitment to energy development in Africa. ExxonMobil has a rich history of over a century of operations in Africa, demonstrating a longstanding commitment to the region’s energy development. Since 2006, the company has pledged more than $46 billion to investments across the continent, underscoring its dedication to driving economic growth and sustainable energy solutions across the continent. The partnership between Algeria and ExxonMobil will therefore be instrumental in enhancing exploration efficiency, optimizing production processes, ensuring sustainable resource utilization practices and leveraging the company’s extensive experience and track record in managing complex energy projects across Africa.

“Algeria’s partnership with ExxonMobil signifies a pivotal moment for the country’s energy landscape. It underscores the potential for collaboration between African nations and IOCs to unlock energy resources, ultimately driving sustainable development and eliminating energy poverty across the continent,” states NJ Ayuk Executive Chairman of the AEC. “By forging such partnerships, Algeria not only secures access to advanced technologies and expertise but also positions itself as a regional gas exporter to European nations.”

This partnership signifies a crucial effort to revitalize Algeria’s energy sector, presenting opportunities for responsible and sustainable utilization of its abundant natural resources. This year’s AEW theme – Energy Growth through an Enabling Environment – perfectly aligns with Algeria’s approach to attracting investment and fostering sustainable energy practices through partnerships. This signifies Algeria’s commitment to energy sustainability, resonating with the broader objectives of the AEW: Invest in African Energy.

Distributed by APO Group on behalf of African Energy Chamber.

The Gambia’s economy has shown a remarkable resilience in the face of heightened global and regional uncertainties, according to The Gambia’s Fourth Economic Update – Spring 2024. Despite a sluggish global environment, the country’s real GDP grew by 5.3% in 2023, signaling a continued recovery from the COVID-19 pandemic and persistent external headwinds.

“We are pleased to see the Gambia’s economic activity improved”, said Feyi Boroffice, World Bank Resident Representative. “The improved agricultural production and increased public consumption as well as private and public investment drove this positive growth. However, challenges such as higher inflation, monetary tightening and economic slowdown in advanced economies disrupted the tertiary sectors and slowed private consumption, all of which tempered the country’s overall performance”.

Inflation pursued its uptrend throughout 2023 to reach even higher levels in decades, mainly due to global price of commodities. The Central Bank of The Gambia has responded by further tightening monetary policy to curb inflation, raising the policy rate to 17% in December 2023 from 13% a year before.

Looking ahead, the economic outlook for The Gambia remains favorable, with GDP projected to grow by 5.6% over the period of 2024-2026. Growth will be driven by increased economic activity in all sectors, while hinging on a continuous commitment to macro-fiscal stability. However, the prolonged regional and global geopolitical tensions, debt vulnerabilities, reemerging forex pressures, extreme weather events, fiscal slippage, and continued financial tightening, poses downside risks to the country’s economic prospects.

From the long-term perspective, the pace of economic growth has been declining and volatile since independence, due to the occurrence of droughts, economic mismanagement, and weak governance, combined with poor infrastructure and other structural constraints, all of which resulted in negative long-term productivity growth.

Following its democratic transition in 2017, The Gambia recorded resilient growth and positive productivity growth, thanks to relative improvements in macroeconomic and fiscal management and stability. Poverty and inequality remain high, while disparities prevail in access to essential service. Also, The Gambia’s labor market suffers from significant underutilization, low labor force participation, and high informal employment, with large gender disparities. The Gambia’s economy suffers from a lack of structural change, despite an increase in productivity following the country’s transition to democracy, with a room for maneuver to improve inclusive growth.

“The Gambia’s economic recovery is encouraging, but there is need to address structural constraints hampering faster growth,” emphasized Ephrem Niyongabo, World Bank Economist for The Gambia and Author of report. “It is crucial for the government to implement policies that enhance transformative structural changes, needed to sustain productivity and productivity and support the country’s inclusive economic growth agenda.”

The World Bank stands ready to continue supporting The Gambia in its efforts to strengthen the economy, reduce poverty, and achieve sustainable and inclusive growth.

Distributed by APO Group on behalf of The World Bank Group.

President His Highness Sheikh Mohamed bin Zayed Al Nahyan has sent a message of congratulations to President Isaias Afwerki of Eritrea on the occasion of his country’s Independence Day.

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, and His Highness Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister and Chairman of the Presidential Court, also dispatched similar messages to the Eritrean President.

Distributed by APO Group on behalf of United Arab Emirates Ministry of Foreign Affairs&International Cooperation.

The 33rd Independence Day anniversary was enthusiastically celebrated in the Southern, Gash Barka Regions and in Sawa National Service Training Center under the theme “Peace Anchored on Resilience.”

The celebratory event in Mendefera on 22 May was attended by senior Government and PFDJ officials, as well as a number of invited guests. It featured cultural and artistic performances in which over 850 students and artists participated.

Mr. Habteab Tesfatsion, Governor of the region, stated that the 33rd Independence Day anniversary marks the day when Eritrea secured its peace and security. He also emphasized that the Eritrean people have emerged victorious against occupation and successive external hostilities and open aggression due to their unity and perseverance.

Mr. Abraham Yohannes, chairman of the Holidays Coordinating Committee in the region, noted that as part of the celebratory events, various programs have been conducted across the region since 16 May.

In related news, the 33rd Independence Day anniversary was celebrated in Barantu at the regional level on 22 May.

Mr. Idris Saleh, chairman of the Holidays Coordinating Committee in the region, said that the Independence Day anniversary celebrations were conducted in all 16 sub-zones of the region, featuring military parades, cultural and artistic performances, and other programs. He also commended those who contributed to the successful implementation of the programs, including the public, Eastern Command and Border Patrol, and administration at all levels.

Ambassador Mahmud Ali Hirui, Governor of the region, explained the deep significance of the Independence Day celebrations and called for double-fold efforts to secure peace and successfully implement national development programs.

Similarly, the 33rd Independence Day anniversary was celebrated in Sawa yesterday, featuring various cultural and artistic programs.

The celebratory event was attended by Col. Debesay Ghide, Commander of the National Service Training Center, commanders and staff members of the center, as well as members of the 36th round of the national service.

At the occasion, Col. Debesay Ghide called on the youth to shoulder the responsibility that the day bestowed on them and to preserve their unity in diversity.

Distributed by APO Group on behalf of Ministry of Information, Eritrea.