The African Export-Import Bank (Afreximbank) has revealed its pivotal role as the primary financier of oil and gas projects throughout Africa. The bank announced that it has injected $30 billion into industry projects, with Nigeria receiving the lion’s share of 60%, despite reduced global funding for hydrocarbon ventures across the continent.
Prof. Benedict Oramah, President of Afreximbank, stressed the critical need for Africa to devise innovative solutions to address its significant energy deficit. Speaking at the National Oil Companies Forum during the ongoing Nigeria International Energy Summit in Abuja, Prof. Oramah emphasized the urgency of the matter.
Represented by Mr. Haytham ElMaayergi, Executive Vice President of Global Trade Bank, Prof. Oramah expressed concerns over the paradox facing the continent. Despite being rich in oil, gas, solar, and hydro resources, a significant portion of Africa’s population still lacks access to reliable and affordable energy.
He pointed out the continent’s limited traditional energy infrastructure while underscoring the opportunity for leapfrogging to more efficient renewable technology. This strategic shift towards renewable energy could help address Africa’s energy deficit while also promoting sustainability and environmental conservation.
The discourse surrounding energy security and transition remains a mere aspiration without access to adequate funding resources under our control. With many international banks retracting their investments from the oil and gas sector, funding in this industry has significantly dwindled, impacting exploration and production activities.
Afreximbank has emerged as a significant player, becoming the primary financier of oil and gas projects across the continent. The bank’s support for the sector exceeds $30 billion, with Nigeria being a major beneficiary, receiving nearly 60% of the total funding.
Crucially, Afreximbank’s ability to contribute substantially to the oil and gas sector stems from its predominantly African ownership and control, empowering it to make significant investments where needed.
Furthermore, Oramah disclosed Afreximbank’s plans to oversee the management of the proposed Africa Energy Bank, aiming to optimize its chances of success. The Africa Energy Bank’s strategic objective is to lead in reshaping the energy landscape across Africa through strategic partnerships with established African and international financial institutions and investors. Its primary focus will be on providing sustainable financing for the oil and gas sector.
Launching the Africa Energy Bank will require considerable support to ensure its successful establishment and operation. Member states’ backing will be essential to attain the necessary level of capitalization required to support the energy sector effectively.
In summary, Afreximbank’s substantial investment in oil and gas projects, particularly in Nigeria, underscores the pressing need for Africa to adopt innovative solutions to meet its energy needs and propel sustainable development across the continent.
Source: The energy Republic