First Energy Africa Oil Corp. Bolsters Board with Seasoned Capital‑Markets and Energy Experts
Calgary‑based First Energy Africa Oil Corp. has announced the appointment of two industry veterans to its Board of Directors: Simon Akit, a capital‑markets specialist who has facilitated more than US$5 billion in equity and debt financing, and Frederick Kozak, a professional engineer and former oil‑and‑gas research analyst with over four decades of experience across African and South American resource markets. The moves aim to strengthen the company’s guidance as African oil and gas firms adapt to a shifting financing environment.
A Changing Financing Landscape for African Energy
Access to traditional bank lending for fossil‑fuel projects has tightened across the continent, driven by heightened environmental, social, and governance (ESG) scrutiny from Western financiers. As a result, many African explorers are turning to alternative sources of capital.
- Private equity and venture‑capital funds
- International investment platforms focused on emerging markets
- Regional development banks and local financial institutions
Simon Akit notes that while securing funding remains feasible, the criteria have evolved.
“It has become more difficult to get funding from the traditional banks we used to rely on,” Akit said. “So companies have had to look elsewhere—from private investors, international funds, and local banks. Finding the investment for African energy projects hasn’t been a big problem, but to convince these newer investors to say yes, we’ve had to be more flexible around valuation.”
Investor Priorities: Political Certainty Over Geology
According to Akit, the decisive factor for today’s investors is not the size of a reserve or the prevailing oil price, but the predictability of the governing framework.
“Investors worry about political stability,” he explained. “Not just whether the government supports foreign investment today, but whether that support will still exist if a new government takes over.”
“The biggest obstacle isn’t oil, or geology, or even price. It’s trust. Investors are asking African nations to make a commitment that outlives any single leader or election, because nobody wants to put years of money into something, only to have the rules change halfway through.”
This perspective aligns with observations from the African Energy Chamber, which reports that Africa continues to attract roughly US$41 billion in global exploration spending annually, underscoring sustained interest despite financing headwinds.
Balancing Returns with National Development
Frederick Kozak emphasizes that African governments can maximize the value of their hydrocarbon endowments while ensuring broad societal benefits, provided they craft fiscal regimes that are both competitive and equitable.
“The Guyana lesson is very clear—the country must not give away their resources,” Kozak said. “Development of future discoveries should be reasonable for the country with jobs created, industry created, and education of the country’s labor force.”
“Countries need to have a fiscal regime that makes it attractive enough for companies to do the groundwork for exploration, and attractive enough that if an oil discovery is going to be developed, the company gets a reasonable economic return on their investment.”
Industry analysts suggest that achieving this balance will be pivotal if the continent is to meet its long‑term production ambition of 13.6 million barrels of oil equivalent per day by 2030, a target cited in multiple regional energy outlooks.
Implications for Energy Security and Economic Growth
For consumers facing elevated fuel prices in many African markets, stronger institutions and consistent investment policies could translate into greater domestic output, job creation, and improved energy security. By fostering trust‑based relationships with investors—rather than relying solely on geological promise—African nations stand a better chance of converting underground reserves into lasting economic benefits.
As global competition for capital intensifies, the consensus among sector leaders is clear: predictable governance, transparent fiscal frameworks, and credible commitment to long‑term stability will determine which countries successfully transform resource potential into sustainable development.
