The African Export-Import Bank announced Wednesday that it has become Africa’s largest funder of oil and gas projects.
The bank acknowledged investing $30 billion in industry initiatives, with Nigeria obtaining 60% despite decreased global funding for hydrocarbon operations in Africa.
Prof Benedict Oramah, President of Afreximbank, believes Africa must find inventive solutions to its massive energy shortage.
On Wednesday, Oramah spoke at the National Oil Companies Forum during the current Nigeria International Energy Summit in Abuja.
Prof. Oramah, represented by Mr. Haytham ElMaayergi, Executive Vice President, Global Trade Bank, regretted that on a continent with enormous oil, gas, and sun hydro resources, the vast majority of the people still lacks access to reliable and inexpensive energy.
He explained that the continent lacks large traditional energy infrastructure, but that this presents an opportunity to accelerate the transition to renewable technology.
“Our aspiration in the area of energy security and energy transition will remain aspiration unless we have access to adequate funding resources that we control. With a lot of international banks withdrawing funding out of the oil and gas sector, the investment in the industry has become severely limited with the corresponding impact on exploration and production.
“Afreximbank has intervened in a big way, quickly becoming the largest financier of oil and gas deals in the continent. The support provided to the sector by the bank is in excess of 30 billion US dollars. Nigeria has been one of the largest beneficiaries accounting for almost 60 percent of the total funding of the sector.
“And it’s important to the point that afreximbank has been able to make those modest contributions in the oil and gas sector because the bank is predominantly African in ownership and control”, he stated.
Oramah disclosed that Afreximbank would be managing the proposed Africa Energy Bank to ensure its best chance of success.
“The strategic goal of the Africa Energy Bank is to play a leadership role in shaping the energy landscape in Africa through strategic partnership with proven African and international financial institutions and investors and also to provide sustainable financing in this area of the oil and gas sector.
“The Africa energy bank will need considerable support to get off the ground. We will need support from member states to achieve the level of capitalization that is adequate to support the energy sector”, he added.