Oil, gas have integral role in shaping Africa's economic growth - Mashatile

Mashatile addressed the Africa Oil Week conference in Cape Town on Tuesday.

He told delegates that the country’s electricity crisis is hampering economic growth, which in turn undermines the government's efforts to address the myriad of socio-economic issues affecting the country.

"The status quo regarding access to energy shows a need for urgency in how growing economies address the energy crisis, considering the impact on people, businesses, the public sector and other stakeholders.

"I am confident that over this week, you will have meaningful discussions that can serve and better respond to some of the challenges we have as a country and collectively as a continent.”

Mashatile said oil and gas have an integral role in shaping Africa's economic growth and development, even as the world transitions to greener and more sustainable resources.

“Oil and gas are global commodities that have the power to inform the growth or decline of all economies. The impact on the economy due to the Russia and Ukraine conflict is a prime example of how intertwined our economies are. Still, it also reveals the levels of dependency on resource-rich and capacity-strong nations for the economic development of our countries.

 “As a continent, we are responsible for safeguarding the interests of Africans and using all the mechanisms available to better respond to global crises of all proportions.”

He added that while Africa has significantly contributed to the expansion of many developed economies worldwide through its resources, the continent is still largely confronted by high levels of poverty and underdevelopment.

"The profitability of mineral resources has provided nations with the capacity to maintain industrial activities, as well as to ensure that there is energy security. In the world that we live in today, mineral resources are the currency that drives economic growth," said Mashatile. 

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