Turning potential to development
How DSV and other private sector partners are helping drive economic development in Africa
Successful collaboration between private and public sectors will help realise the huge potential of Africa’s oil and gas industry – and contribute significantly to the continent’s socio-economic development.
Estimates of the value of the global oil and gas market vary, but a global market research firm [1] values the market at USD 6,585.54 billion in 2022 and says it is projected to reach USD 8,568.72 billion by 2030, growing at a CAGR of 3.80% from 2023 to 2030.
With substantial reserves of oil and natural gas, Africa has been a focal point for international investment and exploration activities and more than 490 [2] projects were anticipated to start in the period 2023–2027. Africa accounted for roughly eight percent [3] of the global oil output in 2022, and natural gas reserves exceed 625 trillion cubic metres. Natural gas production has been steadily increasing, as the table from below indicates:
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Source Statista
Converting potential to productive use and benefit is challenging, and this is where DSV plays a role, moving drilling rigs, building refineries and pipelines, spare parts, oversized cargo, heavy machinery and rig-down critical equipment from manufacturer to the remotest locations in the world.
It’s a deadline-driven industry that requires large-scale freight to be handled to remote regions, the consolidation of diverse transportation modes and moving of hazardous materials, all of which DSV provides from a footprint covering the world’s major industry hubs: Houston, USA (the Gulf); Aberdeen, Scotland (North Sea); Rotterdam, Holland (Europe); Cape Town, South Africa (Africa); Dubai, UAE (Middle East); and Singapore (Asia).
DSV’s tailored Oil & Gas end-to-end visibility is particularly important, and integrates purchase order management, warehousing, and transport data. The process effectively links each party in the supply chain, providing 24-hour visibility.
DSV’s proprietary Purchase Order Management System, eDC, is an EDI value added service that provides customers with true visibility of any piece of cargo and its exact location at any time, along with delivery targets. eDC also provides analytic reporting on performance and trends, enabling customers to react accordingly.
DSV is currently active in Angola (30 projects since 2011), Mozambique (more than 25 projects since 1998), South Africa (more than 15 projects since 2009) and Namibia (more than 5 projects since 2010). There has been recent activity in Zimbabwe with an exploration discovery in 2023, and this could lead to further investment appetite in the region.
The exploration and production of oil and gas provides vital revenues – oil and gas accounted for nearly six percent of Nigeria’s GDP in 2023 and 19 percent of Algeria’s GDP in 2019 according to reports – and employment opportunities, contributing to infrastructure development and industrialization and significantly impacts the continent's development and its position in global energy dynamics.
Although the sector has historically been concentrated in countries such as Nigeria, Algeria, Angola, Egypt, and Libya, it has grown steadily in other parts of the continent too, as evidenced by DSV’s extensive involvement in Angola and Mozambique. More recently significant discoveries of oil reserves have been made in Uganda.
The global focus on renewable energy sustainability is driving innovation in cleaner energy production, and DSV has been involved in a number of solar and wind projects in South Africa.
The oil and gas industry in Africa has an important part to play in attracting investment, catalysing infrastructure development and contributing to the continent’s economic development – and all role-players recognise the need to balance economic growth with environmental sustainability.
It’s a deadline-driven industry that requires large-scale freight to be handled to remote regions, the consolidation of diverse transportation modes and moving of hazardous materials, all of which DSV provides from a footprint covering the world’s major industry hubs: Houston, USA (the Gulf); Aberdeen, Scotland (North Sea); Rotterdam, Holland (Europe); Cape Town, South Africa (Africa); Dubai, UAE (Middle East); and Singapore (Asia).
DSV’s tailored Oil & Gas end-to-end visibility is particularly important, and integrates purchase order management, warehousing, and transport data. The process effectively links each party in the supply chain, providing 24-hour visibility.
DSV’s proprietary Purchase Order Management System, eDC, is an EDI value added service that provides customers with true visibility of any piece of cargo and its exact location at any time, along with delivery targets. eDC also provides analytic reporting on performance and trends, enabling customers to react accordingly.
DSV is currently active in Angola (30 projects since 2011), Mozambique (more than 25 projects since 1998), South Africa (more than 15 projects since 2009) and Namibia (more than 5 projects since 2010). There has been recent activity in Zimbabwe with an exploration discovery in 2023, and this could lead to further investment appetite in the region.
The exploration and production of oil and gas provides vital revenues – oil and gas accounted for nearly six percent of Nigeria’s GDP in 2023 and 19 percent of Algeria’s GDP in 2019 according to reports – and employment opportunities, contributing to infrastructure development and industrialization and significantly impacts the continent's development and its position in global energy dynamics.
Although the sector has historically been concentrated in countries such as Nigeria, Algeria, Angola, Egypt, and Libya, it has grown steadily in other parts of the continent too, as evidenced by DSV’s extensive involvement in Angola and Mozambique. More recently significant discoveries of oil reserves have been made in Uganda.
The global focus on renewable energy sustainability is driving innovation in cleaner energy production, and DSV has been involved in a number of solar and wind projects in South Africa.
The oil and gas industry in Africa has an important part to play in attracting investment, catalysing infrastructure development and contributing to the continent’s economic development – and all role-players recognise the need to balance economic growth with environmental sustainability.
Case study
A global drilling rig customer appointed DSV for a five-year period to handle all outbound transportation from various logistics hubs to the customer’s more than 20 global rig sites.
The scope of work includes pick-up and delivery to the DSV hub, line item checking, packaging and consolidating cargo, and air or ocean transport to destination countries or locations.
Each order’s milestones along the supply chain journey are visible through our eDC PO management system.
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Highlights of Case Study
References
- Kings Research - Oil and gas market Published by Antriksh P, September 2023
- Global Data - Africa oil and gas projects market analysisPublished in April 2023
- Statista - Oil and natural gas industry in Africa Published by Doris Dokua Sasu, December 2023
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