In a significant development, the African Export-Import Bank (Afreximbank) has revealed its pivotal role as the largest financier of oil and gas projects across the African continent.
With a substantial investment totaling $30 billion in industry ventures, Nigeria has emerged as the primary beneficiary, receiving 60 percent of the funding despite a decline in global financial support for hydrocarbon initiatives in Africa.
Addressing the audience at the ongoing Nigeria International Energy Summit 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 underscored the paradox of abundant energy resources juxtaposed with widespread lack of access to reliable and affordable energy services across the continent.
Highlighting the opportunity for leapfrogging to more efficient renewable technologies in the absence of extensive traditional energy infrastructure, Prof. Oramah stressed the crucial role of adequate funding resources under Africa’s control to realize energy security and transition aspirations. He noted the adverse impact of reduced international funding in the oil and gas sector on exploration and production activities.
Afreximbank’s pivotal intervention as the foremost financier of oil and gas deals in Africa has been instrumental in mitigating the funding shortfall, with Nigeria standing out as a major beneficiary. Prof. Oramah attributed the bank’s ability to make substantial contributions to its predominantly African ownership and control.
Looking ahead, Prof. Oramah announced Afreximbank’s management of the proposed Africa Energy Bank, aiming to spearhead the transformation of the energy landscape through strategic partnerships with African and international financial institutions and investors. Emphasizing the need for considerable support to establish the Africa Energy Bank, he called upon member states to contribute to its capitalization for sustained financing in the oil and gas sector.
