[Debate] The Witwatersrand Communique

[Mandi Smallhorne]

Just received this:

 

 

 

 

The African Presidential Roundtable 2012: 

WITWATERSRAND COMMUNIQUÉ : A 21st Century Energy Agenda for Africa

Johannesburg, South Africa

May 25, 2012

 

 

I. INTRODUCTION

 

The African Presidential Roundtable 2012: A 21st Century Energy Agenda for
Africa was held from May 23-25, at the University of the Witwatersrand,
Johannesburg, South Africa. The Roundtable was a multi-continental
conversation involving former African heads of state and government,
diplomats, industry leaders, international dignitaries, and students and
faculty from the United States, Europe, and Africa.

 

The Roundtable marked the 10th Anniversary of the African Presidential
Roundtable and coincided with University of Witwatersrand’s 90th Year
Celebrations.

 

The 2012 Roundtable was a follow-up to the Balaclava Summit held last year
in Mauritius, which also focused on energy security in Africa. The charge we
received in Balaclava to reconvene to refine our recommendations and expand
the stakeholders in the conversation was the focus of this meeting. 

 

The Roundtable deliberations were lead by experts in the public and private
sector, from institutions such as the World Energy Council, USAID, CAMAC
Energy, the Energy Power Group, Uranium One, the World Bank, the Ministries
of Energy of Niger, South Africa, and Mozambique; Boston University and the
University of the Witwatersrand. Over 200 public and private sector leaders
participated in the deliberations, forums, and functions. More than 90
student leaders and faculty from American and African universities attended
as official observers under the sponsorship of the United States Agency for
International Development (USAID).

 

The following Heads of State and Government were co-conveners of the
Roundtable:

-          His Excellency Nicéphore Dieudonné Soglo former President of the
Republic of Benin,

-          His Excellency Pedro Pires former President of Cape Verde, 

-          His Excellency Joaquim Chissano of the Republic of Mozambique

-          His Excellency Olusegun Obasanjo former President of the Republic
of Nigeria,

-          His Excellency Thabo Mbeki of the Republic of South Africa 

-          His Excellency Benjamin Mkapa former President of the Republic
Tanzania, 

-          His Excellency Ali Hassan Mwinyi former President of the Republic
Tanzania, 

-          His Excellency Rupiah Banda former President of the Republic of
Zambia. And

-          His Excellency Amani Abeid Karume former President of Zanzibar.

 

This year's African Presidential Roundtable focused on how governments,
institutions, and individuals can aid in bringing Africa closer to achieving
energy security. The challenge of achieving energy security for Africa, if
left unresolved, has the potential to bring development to a standstill in
otherwise successful countries. If solved, it has the potential to drive
development on the continent to unprecedented levels. This year's African
Presidential Roundtable focused on how governments, institutions, and
individuals can aid in bringing Africa closer to achieving a resolution to
this pressing dilemma.

 

The deliberations explored ways to maximize the value/potential of Africa’s
renewable, non-renewable, and sustainable energy resources; and the
importance of mobilizing its human resources in order to reach its
potential. The Roundtable discussions also addressed the demand for
qualified energy-sector personnel on the continent to meet the demands of
Africa’s energy needs for the next fifty years, and stressed the importance
of more young people committing to scientific courses of study so as to
contribute to the solution of this pressing problem.

 

 

II. AFRICA’S ENERGY PROFILE



Africa is becoming the next World Energy Hub because it is strategically
situated and has a wealth of natural resources. Africa has at least an 8-10%
share of the proven global world oil and gas reserves, and has already
overtaken the Middle East as the major oil supplier to the U.S.

*	Libya has oil reserves of 43.7 - 46.4 billion barrels, and close to
55 trillion cubic feet of natural gas reserves; Nigeria, the fifth-biggest
source of U.S. oil import, had a total reserve of 38.7 billion barrels in
2010; Algeria has 12.2 billion barrels of proven oil reserves, and 159
trillion cubic feet of natural gas reserves; Angola had 9.5 billion barrels
of oil and gas, as of January 2011, and crude oil production is currently
between 1.52 and 1.6 million barrels per day.
*	Other African countries, such as Sudan, Gabon, Cameroon, Gambia,
Kenya, Guinea, Egypt, Equatorial Guinea, Uganda, Ghana, Côte D’Ivoire,
Mozambique, Sierra Leone, Liberia, and Tanzania are also believed to have
huge deposits of oil and natural gas, which are likely to be exported.
*	East Africa, and particularly Mozambique, is entering the energy
league, with huge natural gas reserves. The LNG export terminal in
Mozambique is currently under development by U.S., British, Japanese, and
Indian investors and will be worth $1.8 billion by 2018.
*	Africa also has at least 15% of the world’s known uranium resources.
Niger will soon be the 2nd largest uranium producer in the world.
Significant reserves have also been found in Tanzania, Namibia, and
Botswana.

 

 

III. OPTIONS AND OPPORTUNITIES FOR AFRICA TO ACHIEVE ENERGY SECURITY



Africa is energy-rich in non-renewable and renewable resources. Africa’s
coal, oil, and uranium reserves are enough to literally light the world and
power the planet. The potential is also promising for Africa as a source of
renewable energy, including hydro, solar, and wind power. The 2,000km
coastal corridor from Morocco to Senegal provides an opportunity to harness
the wind’s power in unprecedented ways, In terms of hydropower, the Nile,
Congo, Limpopo, and Zambezi Rivers have the potential to light every
household and satisfy energy requirements of every village and town on the
African continent. In addition to Africa’s largest rivers, it is also
important to consider the potential for the medium-size rivers and dams in
each region. These rivers hold the potential to provide regional energy
security while progress is made on larger-scale development projects using
the larger rivers.  Given Africa’s vast expanse of deserts, which are
veritable magnets to harness the sun’s power; Africa has the potential to
lead the world as an innovator in the production and use of solar and wind
power. Some examples discussed during the Roundtable of how Africa and the
developing world is taking steps to ensure energy security include the
following:

*	In Tanzania, Uranium 1 is expected to produce 120 million pounds of
Uranium and 4.2 million pounds per year for an estimate of $430 million or
2.1% of Tanzania’s GDP. This project will produce 1,600 jobs and 4,500
additional jobs, and Tanzania will likely gain $3 billion from royalties,
taxes, and employee taxes. As a result of the peripheral operation 8.3
million children are being educated in primary schools; 175 thousand
teachers will be hired; resources have been allocated to address health
issues such as HIV, malaria, and tuberculosis. 
*	In 2009 the Maldives made a commitment to go to 0 Carbon Emissions,
and enshrined this commitment as an act of parliament during an underwater
meeting. The forum developed a framework to ensure delivery, and
participants worked to ensure international finance loan guarantees so as to
de-risk the project and enable it. The initial assessment outcome was that
renewable technologies were cheaper than non-renewable ones, such as diesel,
and that if you have a strong energy framework design there are economic
benefits, as well as an environmentally-friendly technology. 
*	Celco, based in Bangalore, have been innovative in destroying the
myth that renewable energy is not appropriate for the poor. They have
developed innovative business models that have improved the bottom end of
the economy to transform their businesses by moving towards appropriate
solar technologies, primarily in lighting and mobile-phone charging. 

 

IV. RECOMMENDATIONS



Africa’s ability to attain energy security rests on political leadership,
policy, and its people. We encourage political leaders at every level to
lead the necessary country and continental dialogue, which must take place
if energy security is going to get the sustained attention it needs to be
achieved. As policy issues go, energy isn’t sexy; but it is serious. Dealing
with energy security is a long-term challenge, and as such requires
sustained political will. As representatives of those who have participated
in this process we make the following recommendations:

 

1.      Supra-regional Structures
We need a commitment to supra-regional structures in the development of
energy strategies; by supra-regional we mean that African governments need
to coordinate their overarching development plans at the continental level
so as to ensure continent-wide energy security. The nations included in
these supra-regional blocs must provide:

*	Policies and practices that ensure social and political
stabilization across Africa,
*	Consistent regulatory environment, especially compliance and
enforcement,
*	Coordinated leadership among energy-producing countries throughout
the continent,
*	On-going policies within the continent that support oil and gas
enterprises,
*	Complementary growth rates and strategies,
*	Compatible tax law, especially incentives for renewable energy, and
*	A comprehensive energy plan for each bloc that addresses each
sector’s needs (industry, government, business, residential,
transportation).



This is the point at which politics and policy meet. There have been
innumerable suggestions and summits focused on the need for coordinated
strategies to attain energy security. Yet, progressing beyond talk to action
is a problem. To move beyond the gridlock we must first recognize that the
problem exists. By engaging a broader expanse of Africans (and friends of
Africa) in this conversation; hopefully will result gaining enough momentum
to move from dialogue to decisions on cooperative strategies on achieving
energy security over the next fifty years.



2.      Human Resource Development
Beyond politics and policy, Africa’s people, particularly its next
generation, must get personally invested in solving Africa’s energy crisis.
For Africa to fulfill its potential and increase its energy capacity will
require a tremendous infusion of human resources in the energy sector. Over
the next 5 decades Africa will need:

*	40,000 C1 Technicians,
*	30,000 C2 Technicians,
*	17,000 Engineers, and
*	7,000 Research Scientists.

The call for Africa’s young people to rise to the occasion and look at
training in these fields is the contribution they must make if Africa is to
fulfill its future promise. There is an urgent need for education to prepare
for energy security.  This education has to be at all levels, and extensive
research is necessary to accurately assess and understand the full extent of
Africa’s energy needs. In securing Africa’s energy future, Africa’s young
people can either be a part of the solution or a part of the problem.

 

3.      Public and Private Partnerships
Many of the first generation contracts and compacts that African governments
negotiated with multinational corporations and multilateral organizations
did not yield fair and reasonable returns for many African countries. In
recent years, many African governments have revisited the laws and
regulations that provided the framework for previous agreements to explore
and exploit Africa’s resource potential. The rules and regulations for how
Africa’s resources get tapped are changing. There are new, and in some
cases, increased requirements for royalties and taxes, as well as for
expanded local procurement and employment opportunities for country
nationals. These sorts of initiatives are welcomed and important; but today
we issue a call to a higher standard of corporate citizenship on the part of
companies doing business on our continent. We call on companies to do more
than simply comply with baseline legal requirements; but look for other ways
to bring value-added to the countries in which they do business that reflect
a greater sense of moral obligation. We also urge the international
organizations to make studies that use appropriate expertize to identify the
specific energy needs in the different regions of Africa. These studies
provide a basis on which African governments can source financing, and
should also provide direction as to how to recover the financial support
committed to large-scale development projects. 

 

 

 

 

V. CONCLUSION



Finally, on behalf of Their Excellencies convening this summit and the
Roundtable participants, let us express our gratitude to Professor Loyiso
Nongxa, Vice-Chancellor of the University of the Witwatersrand, for so
generously hosting the 2012 African Presidential Roundtable. I also thank
our generous partners and sponsors for this year’s Roundtable, CAMAC and
CAMAC Energy, Standard Bank, Liberty, Safika Holdings, Joburg Tourism,
McGuireWoods, and of course, the United States Agency for International
Development. We thank our distinguished guests and all participants for
their optimism and charge to our emerging leaders to face head-on the
challenges and opportunities of establishing energy security for Africa, and
commit to lighting the continent.

 

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