On Wednesday, the African Export-Import Bank announced that it has emerged as the primary financier of oil and gas ventures across Africa. The bank revealed that it has invested $30 billion in various industry projects, with Nigeria receiving 60 percent of this investment, despite a decrease in global funding for hydrocarbon initiatives in Africa,Punch reports.
Speaking at the National Oil Companies Forum during the Nigeria International Energy Summit in Abuja, President of Afreximbank, Prof Benedict Oramah, emphasized the need for Africa to devise innovative solutions to address its substantial energy deficit. Represented by Mr. Haytham ElMaayergi, Executive Vice President of Global Trade Bank, Prof. Oramah expressed concern over the paradoxical situation in a continent rich in oil, gas, solar, and hydro resources, yet where a significant portion of the population lacks access to reliable and affordable energy.
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Highlighting the limited traditional energy infrastructure across the continent, Prof. Oramah underscored the opportunity for leapfrogging into more efficient renewable technologies. He noted that aspirations for energy security and transition would remain unrealized without access to sufficient funding resources under African control, especially as many international banks withdraw funding from the oil and gas sector, severely restricting investment in exploration and production.
Afreximbank has played a crucial role in addressing this gap, emerging as the largest financier of oil and gas projects in Africa, with over $30 billion in support provided to the sector. Nigeria has been a major beneficiary, receiving almost 60 percent of the total funding. Prof. Oramah emphasized that Afreximbank’s ability to make significant contributions to the sector stems from its predominantly African ownership and control.
Furthermore, Prof. Oramah disclosed Afreximbank’s plans to manage the proposed Africa Energy Bank, aiming to shape the energy landscape on the continent through strategic partnerships with African and international financial institutions and investors. The Africa Energy Bank aims to provide sustainable financing for the oil and gas sector, but its success will depend on considerable support from member states to achieve adequate capitalization.
