In response to the declining availability of international funding for hydrocarbon projects in Africa, the African Export-Import Bank (AfreximBank) revealed its pivotal role as the largest financier of oil and gas projects across the continent. With an impressive investment totaling $30 billion, AfreximBank has significantly contributed to funding critical projects in the industry, with Nigeria receiving the majority share of 60 percent of the funding.
Speaking at the National Oil Companies Forum during the Nigeria International Energy Summit (NIES) in Abuja, Prof. Benedict Oramah, President of AfreximBank, emphasized the urgent need for innovative solutions to address Africa’s substantial energy deficit. Represented by Mr. Haytham ElMaayergi, Executive Vice President of Global Trade Bank, Prof. Oramah lamented the paradox of abundant energy resources in Africa coexisting with widespread energy poverty.
Highlighting the continent’s lack of extensive traditional energy infrastructure, Prof. Oramah underscored the opportunity for leapfrogging to more efficient renewable technology. He emphasized that achieving energy security and transitioning to renewable energy sources requires access to adequate funding resources that are under African control, especially with international banks withdrawing funding from the oil and gas sector.
AfreximBank’s intervention in the oil and gas sector has been substantial, making it the largest financier of such projects in Africa. Nigeria, being one of the largest beneficiaries, has received nearly 60 percent of the total funding allocated to the sector by the bank. Prof. Oramah attributed AfreximBank’s ability to make significant contributions to the sector to its predominantly African ownership and control.
Additionally, Prof. Oramah disclosed AfreximBank’s plans to manage the proposed Africa Energy Bank, aimed at shaping the continent’s energy landscape through strategic partnerships with African and international financial institutions and investors. He emphasized the need for substantial support from member states to ensure the success and adequate capitalization of the Africa Energy Bank, which will play a crucial role in providing sustainable financing for the oil and gas sector.
Overall, AfreximBank’s significant role in financing African oil and gas projects underscores its commitment to driving sustainable development and energy security across the continent, with Nigeria benefiting significantly from its initiatives.
