While diplomatic and trade relations between the US and South Africa are on shaky ground at the highest levels, US companies and government officials have declared their clear intentions to deepen involvement in the region’s oil and gas sector.
The African Refiners and Developers Association (Arda) held its 20th conference in Cape Town this week, hosting delegates from US-based companies and the US government. While private sector delegates from Europe were present, European government officials were largely unrepresented.
Addressing Arda this week, Honeywell UOP Refining vice-president Kelly Seibert said the petroleum industry company was interested in deepening its operations and ties to the African region for long-term developments that benefit all stakeholders involved.
“What we’re looking for in human capital development is monetising the most you can out of your installed assets. We take a multifaceted approach. It’s not only instructor-led training, but it is also the use of job hearing, seeing start-ups with educational opportunity programme staff, and extending that into the lifecycle engagement.
“That lifecycle engagement is from the first opportunity, when you first start to develop your project, up to generational exposure. We want to use you for the next 20 to 30 years to make sure the skills you build are operated as well as they were on day one.”
While US President Donald Trump’s posture towards South Africa and Africa has created trade and diplomatic disruption, characterised by unilateral tariffs, the trade relationship between Africa and the EU has taken strain due to the introduction of the carbon border adjustment mechanism (CBAM), which levies a tax on carbon-intensive goods imported into the region.
The tax, introduced at the beginning of the year, targets goods such as steel, fertiliser, iron, hydrogen, aluminium and cement. Extensive research has found that most, if not all, African exporters will struggle to adjust the carbon input of their goods to meet the requirements of CBAM.
The president of Honeywell, Ken West, said the company was excited about the “once in a generation” prospects that came with Africa’s growing and young population. He said more than 60% of global population growth between 2026 and 2050 will come from the African continent.
“With that population comes a need for refined products. Not only for fuels, but also for a number of products we use every day, from transportation to plastics to household goods and chemical products. This rising demand, right here in this region, is going to require localisation of manufacturing and refining technologies.”
He said the ongoing geopolitical tensions between the US and Iran have added to the volatility in the price of fuels, with categories rising anywhere between 17% and 30%.
“Not only is the price rising, but the supply is becoming disrupted. So even if the region or the countries are willing to pay the prices out there, getting access to these fuels and materials becomes a challenge.
“Unfortunately, I don’t believe this trend is necessarily going to end tomorrow, and the need for energy security is here today as we support the growth that is going to be here in the continent of Africa.”
Not only is the price rising, but the supply is becoming disrupted. So even if the region or the countries are willing to pay the prices out there, getting access to these fuels and materials becomes a challenge.
— Ken West, president of Honeywell
He said Honeywell was relaunching as a “focused automation and technology company that is focused on solving the world’s biggest challenges when it comes to efficiency optimisation and energy security”.
Shiyana Gunasekara, US energy secretary Chris Wright’s lead for global clean cooking access, said Wright was always willing to find a way to talk about the importance of addressing energy poverty in Africa.
“I haven’t worked for a leader who has been this passionate about an issue and has been able to tie in the economic viability and the human imperative on this kind of issue. It makes sense to me. I’m an oil and gas industry person.
“I haven’t worked on development that much in my career. But the links make sense. He was a pioneer in the shale gas revolution in the US. He understood the value of liquefied petroleum gas (LPG) and what it means to bring that kind of fuel, that modern cooking fuel to people, not only in Africa but all around the world.”
She said the US department of energy and the US government were prioritising energy security and energy abundance when it comes to their foreign energy policy. She said the US regarded Africa as a frontier for its LPG export models.
“How can we talk about either of those things when you know a billion people in Africa alone don’t have access to modern cooking fuels? In the US, when we are looking at market development, what are the opportunities for US exports? We are the largest LPG exporter in the world.”
She said through bilateral engagements with counterparts in Africa, the US sought to understand what was constraining their income markets, their LPG supply chains and where US engagement could add specific value.
“By 2040, sub-Saharan Africa should take more than 88% of the energy market of all of those countries. But I see way more potential in that. I think all of you do. This is an energy infrastructure challenge. It should be treated as such by governments alike.
“The US is, again, the world’s largest public health expert. We have a direct commercial interest in seeing these markets develop. But also, being a partner of choice when those markets do develop.”
Arda executive secretary Anibor Kragha said it was prudent for Africa to actively plan for its energy sovereignty urgently as the region could no longer be at the mercy of geopolitical shifts in the global power hierarchy.
“They say, in times of emergency, put on your own mask first, then help those in need. In 2020 we had Covid-19, in 2022 we had the war in Ukraine, and in 2026 we have the war in Iran and various challenges, little to do with Africa.”
Kragha said Africa is seeing rapid population growth but still imports most of its energy. South Africa uses a lot of coal, and the region needs fuel because economic development is more important for the continent than the energy transition.