Welcome to the fourth edition of our review of activities and developments in the African oil and gas industry from a tax and regulatory standpoint. This edition departs from our earlier format which focused on Oil and Gas alone. We have now included Power & Utilities and it's now published under the new title "Africa Energy and Utilities Tax Guide 2018".
The outlook for Africa's Oil & Gas Industry is positive amidst difficult operating and economic headwinds. As the oil price is steadily rising towards pre-collapse levels, tough economic and external conditions have placed pressure on oil & gas companies to be more cost-effective and efficient.
For the Power sector the outlook remains positive as well with increased investment in greenfield projects across the continent and increased use of technology and tailored solutions in the areas of distributed generation, micro-grids, and renewables. Also new gas discoveries will have a positive impact for gas fired power projects across the continent.
Despite the increased focus on the sectors above, the regulatory environment remains a key area of concern for investors and players in the space. Given the complex nature of the regulatory environment in Africa, investors have an increased need for clarity and certainty in making key investment decisions in the space.
At PwC, we have watched these industry developments in both spaces and analysed the effects from the perspective of how they will impact our clients. Using our expertise, we have developed ways in which we can best help companies prepare and manage changes.
If you wish to have a deeper conversation around the information and developments presented in this publication, please contact us.
Partner, PwC Nigeria
Tel: +234 (1) 2711700