While the alcohol industry invariably arouses strong emotions in the other aspect of the Covid-19 philosophical divide, what is undeniable is that there are a number of built-in moving portions that must be combined with paints to put a beer in front of a consumer. The recent closure of taps at local pubs affected the entire beer brewing price chain. The pandemic has had the same negative effect on the resources and energy sector, but the good news is that it turns out to be one of the under-reported recovery stories in 2020, demonstrating that there are reasons to be optimistic, if you take a look at them.
Suddenly, you get the impression that we are back in the 1980s when gold was fashionable and if we take a look at the current value of 2057 USD/ounce gold, we demonstrate once again that gold is a refuge, in the midst of the depreciation of the dollar In Rand’s terms, if we consider exchange rate volatility, the gold symbol is impressive:
Copper, which is considered an intelligent indicator of the suitability of the trading or “real” economy, is actually trading above a year ago, for example:
Those who attach the value of oil will know that it has more than doubled after its unprecedented sale in March 2020. Feelings about global fuel demand due to the Covid-19 pandemic will have a decisive effect on fuel value. NOS Crude inventory levels and a weaker dollar will also play a role in regulating the value of oil. The combination of slow innovations in the value of oil, recent discoveries and the tendency to use fuel as an environmentally friendly energy source is contributing to renewed investor interest in oil and Africa is one of the leading regions in terms of oil and fuel discoveries, and massive fuel discoveries in Mozambique , Mauritania and Senegal will contribute in particular to bringing together the growing demand for fuels in the global energy mix. .
While the sector has noticed an increase in investor negative sentiment in recent years due to emerging production costs, infrastructure challenges, electricity supply, emerging environmental, social and governance standards, and political and economic instability in some regions, giant portions of resources such as Como Anglo American, BHP Billiton and Kumba have recently reached new 12-month highs , while interest in the sector’s resources is recovering. All of the above points put business leaders under unwavering pressure to deliver amazing performance to stakeholders.
While each product has unique features that have had an effect on value movements, these new 12-month spikes are potentially the right news for the African continent, which has more than 30% of the world’s remaining mineral reserves and developing discoveries. oil and fuel reserves.
The key to unlocking investment in Africa is for industry stakeholders to continue to work together in a responsible way to publicize economic growth. The key role of a bank is now evolving to ensure that where we provide financing, the economy and communities gain benefits from it. The trick now is to strengthen the sustainability of the price chain, and it is vital that “sustainability” is not considered “pleasant to have”, but is perceived as an indispensable component of the investment process. activists who oppose projects that do not take into account environmental and sustainability issues.
Topics such as climate replacement are no longer “soft” elements that can be hidden somewhere in a sustainability report. Shareholders and other stakeholders call for the banking sector to take responsibility for financing new projects, which will result in a replacement in the behaviour of all actors in the sector.
It will remain whether the industry is doing enough in terms of carbon emissions to meet the climate replacement targets of the Paris agreement and the listed perimeters.
The central objective of the Paris Agreement is the global reaction to the risk of climate change by keeping the global temperature rise in this century well below 2 degrees Celsius above pre-industrial grades and continuing efforts to further restrict temperature construction to 1. 5 degrees Celsius. In addition, the agreement aims to strengthen countries’ capacity to address the effects of climate replacement and make investment flows consistent with a low GHG path and climate resilience. To achieve these ambitious objectives, the mobilization and provision of adequate monetary resources will require the implementation of a new technological framework and capacity building, supporting the action of emerging and most vulnerable countries, in line with their own national objectives.
The EU has officially followed in law a series of measures that add a binding target for 32% of electricity generation to come from renewable energy until 2030, which would require at least 50% relief on global greenhouse fuel (GHG) emissions by 2050. while world GDP can simply triple and the population can rise to more than 2 billion. So far, functionality has been mixed, with global emissions expanding by about 1% consistently with the year since 2015. resource industry.
For many companies, most greenhouse fuel (GHG) emissions and cost-cutting opportunities are in their own outdoor operations, as they come with purchased goods and services, business travel, worker travel, waste disposal, use of products sold, upstream and downstream investments, as well as leased assets and franchises. While most of the industry is committed to reducing greenhouse fuel emissions from operational “scopes 1 and 2,” it is more difficult to cope with those produced through its consumers because of the complexity they entail.
Green generation will be vital to reduce carbon emissions in operations and reduce environmental impacts. The use of minerals and metals that aid the transition to low-carbon technologies, such as solar panels or wind power, will be demanded. minerals will have to be recycled.
A strong political and regulatory environment is at the forefront for all investors and one of the positive aspects we saw at Mining Indaba this year is that the continent is making positive progress in this regard. The progression of a sector of indigenous resource facilities can be difficult due to the capital intensity of the sectors. To meet some of these challenges, foreign corporations want to marry local companies to raise mandatory capital and develop capacity and education in the country. The budgetary framework will also have to be fair and transparent.
Energy source disorders are a current factor in all African countries and it is encouraging to note that a significant number of diversified renewable energy projects are being implemented across the continent. While these have been renewable and greener energy responses, such as fuel and electricity, coal will continue to play a vital role in our short-term African energy mix.
One of the great unknowns by 2020 is the disruptive effect that COVID-19 will have on the dating between labor and the resources and energy sector. At Mining Indaba, we found that relations between mining corporations and their workforce had advanced. – particularly in South Africa – and that the negotiations had been much less conflicting than in previous years. With organizations facing significant monetary pressures, will tensions build up here?
Based on the work factor, having an effect on surrounding communities is another key issue that companies want to do without communicating in the air. Greenfields mining projects have the ability to be a major catalyst for surrounding communities in terms of task creation and small business support: mining operations across the continent are increasingly sensitive to the role they play in ensuring sustainability and their day-to-day work here. As an investment partner, our transaction groups will conduct audits and site visits prior to investment approval.
The commitment of 130 banks from 49 countries to the Principles for a Responsible Bank of the United Nations, followed in September 2019, marks a vital milestone for the banking sector and for the herbal resources and energy sector.
The principles of a bank are:
Ultimately, all actors in the resources sector will have to recognize that the sector can no longer be open to exploitation. As a monetary spouse, we are committed to working with organizations that price our prices and are willing to invest the price chain responsiblely. Absa, we consider ourselves an herbal spouse for our active consumers in the herbal resource and energy price chain in Africa.
Mandatory cookies are surely for the proper functioning of the site. This category includes only cookies that provide the fundamental capacity and security features of the website. These cookies do not purchase any non-public information.
All cookies that may not be mandatory for it to work and that are used in particular to collect non-public knowledge of users through scans, advertisements and other embedded content are called un-analyzed cookies. It is mandatory to download the user’s consent before executing those cookies in yourArray