Century Group helps the manufacturing of round 200,000 barrels of oil per day, which is roughly 10 % of Nigeria’s each day manufacturing
Interview with: Ken Etete, CEO, Century Group
February 11, 2020
Africa is blessed with an abundance of pure minerals, however its wealthy provides of copper, diamonds and oil have but to translate into sustainable financial development. This is basically as a result of Africa’s economic system is pushed by an ‘extractivist’ development mannequin, that means it sells sources of their uncooked state quite than creating them into extra useful exports. Consequently, the continent has poor value-retention ranges, which in flip hinders job creation and financial development.
To change into a middle-income society, Africa should transition away from its extractivist development mannequin and deal with rising its processing and manufacturing capability – not solely will this enhance Africa’s competitiveness in international commerce, however it’ll additionally profit its residents extra typically. World Finance spoke to Century Group CEO Ken Etete to study extra in regards to the significance of investing in Africa’s individuals and pure sources.
Which of Africa’s sources at present present probably the most promise?
In my opinion, probably the most promising resource is our human capital. If we spend money on human sources by way of schooling, then we’ll enhance the overall buying energy of Africans and unleash their true potential.
If we spend money on human capital by way of schooling, then we’ll enhance the buying energy of Africans and unleash their true potential
At the second, most Africans are unable to flip their consideration to creativity and innovation as a result of they are combating the essential wants of life, equivalent to meals, housing and healthcare. This has very damaging repercussions for the broader economic system.
How can abilities development in Africa enhance financial development?
A talented working inhabitants is important to socioeconomic development. If we are to unlock the worth of Africa’s pure sources, we should first make sure that individuals have the mandatory abilities to accomplish that.
People can not develop these abilities alone, although: governments and native authorities have a key function to play in establishing nationwide programmes for abilities development.
How can African nations make abilities development a prime precedence?
At Century Group, we imagine society wants to be considered an organization – each resource should be utilised and nothing ought to go to waste. If Africa is to take advantage of its sources, many adjustments will want to be made throughout the continent.
First, Africa wants to spend money on its individuals from an early age, laying the foundations for his or her skilled success. From childhood, everybody must be supplied with correct healthcare, public companies and infrastructure, in addition to a high-quality public schooling. For gifted youngsters whose dad and mom can not afford to ship them to faculty, scholarship schemes must be made out there. Support programs like these are essential to making certain that every one youngsters obtain a very good schooling. The curriculum should additionally handle the wants of the job market. All of those parts are essential to serving to individuals realise their potential at each stage of life.
Only when these components are taken care of – and society has useful buildings in place for rewarding efficiency based mostly on benefit – will Africa have a talented workforce that may champion innovation and spur financial progress. If African nations adhere to this development programme, coming generations shall be ready to take pleasure in profitable and fulfilling careers.
Is Century Group at present concerned in any essential tasks?
Over the previous twenty years, we have now performed a component in an enormous variety of tasks with a mixed worth of roughly $2bn. These tasks vary from the cost-effective development of oil fields to the operation and upkeep of offshore manufacturing and storage services, together with early manufacturing programs, floating manufacturing storage and offloading (FPSO) vessels, circulation stations and drilling rigs. We additionally provide companies in mooring and set up, properly intervention, drilling assist, the chartering and administration of offshore assist vessels, procurement, the development and set up of oil and gasoline services, logistics, and normal engineering assist.
In Nigeria, Century Group has backed the oil and gasoline business, regulators and worldwide oil firms by way of infrastructural assist that generates round $200m yearly. As a part of these efforts, Century Group just lately acquired two FPSO vessels, valued collectively at roughly $500m. This is yet one more strategic transfer to enhance home capability in Africa’s oil business. With these acquisitions, Century Group turned one of many first African oil and gasoline firms to have full possession of such property.
On behalf of a shopper and its companions, Century Group can be main properly intervention and information acquisition tasks for extra efficiency administration evaluation at a significant facility situated some 55km from the Nigerian coast. Century Group is spearheading and funding the complete operation to produce an additional 4,000 barrels of oil per day.
What impression have these tasks had on native communities and the broader Nigerian economic system?
Century Group helps the manufacturing of round 200,000 barrels of oil per day, which is roughly 10 % of Nigeria’s each day manufacturing (see Fig 1). The firm’s product choices are designed across the native economic system, offering employment alternatives for each the extremely expert and unskilled. We satisfaction ourselves on the truth that 90 % of our workers are native to Nigeria. This helps to retain worth, cut back unemployment and promote wealth distribution throughout the nation.
Why are tasks like these essential to Africa extra broadly?
By embarking on main infrastructure tasks, supporting the environment friendly development of the oil sector, prioritising price effectivity, utilising native sources and educating technical abilities, we assist Africa retain income and generate long-term revenues from oil.
Although most of our transactions are off-the-shelf and very costly, the expertise utilized by the business is not unique to sure elements of the world. Our perception, due to this fact, is that each African nation concerned within the extractive business ought to endeavour to develop their sources and spur development inside the home market to retain jobs and, by extension, create wealth for the native inhabitants.
Why is funding in Africa so essential?
The world at present faces a number of main challenges. From a enterprise perspective, we imagine that creating extra wealth and constructing extra inclusive economies is strictly what’s required to overcome them.
Our enterprise is of no worth if society isn’t peaceable and secure. Therefore, our technique is to assist financial inclusion and assist cut back poverty, which is itself a weapon able to vital injury to society. We must be deeply involved about each one who can not afford to stay an honest life and the rising numbers of people that are falling into poverty around the globe.
Africa is in a novel and precarious place, as it isn’t but totally built-in into international commerce. Without funding in our individuals and pure sources, we’ll proceed to miss out on the advantages of better integration. This not solely presents a danger to Africa, however to the world as a complete. By investing in Africa and championing sustainable financial development within the area, we are able to carry the continent out of poverty and rework it right into a haven for international funding.
In your thoughts, what does the long run maintain for Century Group?
In the close to future, we would like to change into a public firm. Our final intention is to be internationally profitable and revered. By harnessing African sources as a key driver of development, we’ll increase our attain throughout the globe, permitting everybody to spend money on – and profit from – the large wealth of sources in Africa.
We hope that when Century Group seems on the world stage, will probably be an actual win for the worldwide buyers who need to see what Africa has to provide. We are conscious that African companies have a accountability to win the arrogance of the worldwide investing neighborhood. For this motive, we deal with minimising dangers within the areas that we expect are of the best worth to buyers. Put merely, we would like to act as a information for main buyers hoping to discover alternatives that can add worth to Africa and the worldwide economic system.