Covid-19 Project Delays Hit African Jobs

African countries will see a rise in unemployment once the current wave of gas liquefaction projects are operational, according to the Johannesburg-based African Energy Chamber (AEC).

But the worst effects of project delays caused by the Covid-19 crisis will be avoided if "Africa can harness its natural gas and downstream industrial potential by transforming and monetising its resources at home," its November 12 statement said. 

The profound crises of 2020 following the Covid-19 outbreak have jeopardised hundreds of thousands of jobs across Africa. But in the short term it expects employment to remain strong thanks to ongoing capital projects sanctioned since 2018, especially LNG ventures.

The biggest of these is French Total's mega greenfield Mozambique LNG project in Mozambique requiring over 10 000 employees to set up two liquefaction trains with a combined export capacity of 12.88mn metric tons (mt)/year. Also in Mozambique is Italian Eni's 3.4mn mt/yr Coral Sul FLNG project and BP's 2.45mn mt/yr Greater Tortue Ahmeyim LNG project in Mauritania and Senegal. And there is the Nigerian LNG expansion project.

Towards 2025 however, jobs are expected to decline again on the lack of new projects in 2020 and 2021. These include ExxonMobil's 15.2mn mt/yt Rovuma LNG project in Mozambique, for which no final investment decision has yet been taken. 

"Strong policies need to be put in place so that local capacities increase and are supported by strong industrialisation and local transformation of resources, including through refining, petrochemicals, fertilisers, cement or power production," AEC said.