Energy finds in Africa highlight shifts in sector - DHL report


Image: By DHL
Energy finds in Africa highlight shifts in sector - DHL report

The recent oil and gas finds in Africa will continue to have a positive impact on local economies, if local African suppliers, service providers and other businesses are geared up to service this growth.

This is according to Steve Harley, President of the Energy Sector, for DHL Customer Solutions & Innovations. Harley says that these energy finds provide many possibilities for local businesses, to echo the express operator’s own marked increase in the transportation of energy-related material in the region.

Harley says that forecasts expect African oil supply growth to continue over the next 25 years, with predicted ranges of growth over the period of between 0.5 million and 2.0 million barrels per day. “Africa will need to adapt in order to keep up with the demand, as well as evolving trends in this highly competitive sector.”

He says that globally, the steady and reliable supply of energy is critical to economic activity, and due to Africa’s availability of the resource, it is expected that the continent will see continued and steady economic growth.

“We have also witnessed an increased demand for the resource on the continent, and currently Africa is the region with highest increase in oil consumption globally – 5% in 2012 versus only a 1% increase globally. This is likely to continue as many of the fastest growing economies are situated on the continent.”

Harley does warn though that, as the easily obtainable oil reserves have been has depleted, that most of the new developments are either very remote or technically challenging, which brings issues of infrastructure, transportation and expertise to the fore.

“Forecasts predict that conventional oil production will decline by five percent per year. Extraction from unconventional sources is more complex and relatively more expensive from a supply chain perspective. As such, customers will need complementary expertise from integrated logistics suppliers to meet the challenges of these new geographies and technologies.”

Harley points to DHL’s recent global white paper on Maintenance, Repair and Operations (MRO) supply chain management for energy companies, which shows the oil and gas businesses will require integrated suppliers that are able to support them with end-to-end supply chain solutions. According to the white paper, logistics suppliers need to provide a global footprint in combination with local market expertise. As a trustworthy partner, they also need to drive cost and process optimization and maintain safety and compliance both on and off-site.”

“This is particularly true in Africa,” notes Charles Brewer, Managing Director for DHL Express Sub-Saharan Africa. “While the continent is showing promise, issues around infrastructure, regulatory hurdles, and lack of an integrated supply chain in most markets, can be a major hindrance for energy businesses. Couple that with the need to optimise production and improve supply chain management to enhance service and reduce cost, and you understand the need for integrated suppliers to introduce more robust metrics, optimize the inventory and find cost-effective transport solutions.”

To download the report, please visit:


Share the News

Get Daily Newsletter

comments powered by Disqus


Barclays Africa launches Rise

A new global start-up community has been launched to pioneer financial services and unlock Africa’s potential. Read More

JUA Energy enters Nigeria after success in Kenya

After successfully entering the Kenyan market in April 2014, solar-powered systems and technological electronic accessories manufacturer brand J​UA​ energy has launched in Nigeria to sell through e-tailer Jumia. Read More

Fundamo founder joins Nomanini’s advisory board

Fundamo founder Hannes Van Rensburg, generally considered the father of mobile payments, has joined the advisory board of Nomanini, a South African-based, enterprise technology transactions platform provider. Read More

Airtel sponsors Indo-Africa ICT Expo 2015

Airtel is sponsoring the Indo-Africa ICT Expo 2015 being held at the Kenyatta International Conference Centre (KICC) now underway in Nairobi. Read More

MTN acquires Smart Village to enhance its foothold in the fibre network space

MTN has concluded a deal with MultiChoice to acquire Smart Village, which will accelerate the mobile operator’s fibre to the home (FTTH) strategy to be the provider of choice for high speed fibre network across South Africa. Read More

Agilitude opens East African office on the back of mobility and cloud growth

Tejpal Bedi Salesforce reseller and Consulting Partner Agilitude has announced that is has opened an office in Kenya, making East Africa its next target for growth.  Read More

MTN gets ethics management committee

MTN Nigeria has set up an ethics management committee with the sole responsibility of managing ethics risks. Read More

200 entrepreneurs to launch innovative businesses

Over 200 entrepreneurs from across Africa are set to receive resources, networking opportunities and mentorship from Microsoft 4Afrika and AMPION. Read More

Airtel Ghana MD named Marketing Woman of the Year

The Managing Director of Airtel Ghana, Lucy Quist, has been crowned Marketing Woman of the year at the Chartered Institute of Marketing Ghana (CIMG) Marketing Performance Awards. Read More

Kenya’s growth attracts 50 Norwegian businesses

Norwegian companies are trooping to Kenya to tap emerging opportunities, buoyed by increased growth and the improving business environment. Read More


Sage ERP AfricaSAP AfricaSage Pastel AccountingTrust PayVMWareSamsung ElectronicsMitsumi DistributionPhoenix DistributionMTN BusinessSchneider ElectricMultichoiceMicrosoft 4Afrika


Innovative designer takes e-waste to another levelInnovative designer takes e-waste to another level

Gladys Muyenzelwa is a Gaborone based artist and designer who has an eye for ethnic and contemporary design. But unlike other designers, Muyenzelwa has found a way of using e-waste to make her creations. 


High tech homes: Just press playHigh tech homes: Just press play

High tech, digital homes where everything is automated and connected aren’t the stuff of science fiction any longer, says BNC Technology.


Luba Freeport streamlines its sea of paper with Sage X3

Luba Freeport has implemented the Finance and Distribution modules of the Sage X3 business management solution to automate its business processes across finance and operations.