The African Export-Import Bank has disclosed that it has emerged as the primary financier of oil and gas projects across Africa. The bank noted that it has invested $30 billion in industry projects, with Nigeria receiving 60% of this investment despite reduced global funding for hydrocarbon ventures in Africa.
Prof. Benedict Oramah, President of Afreximbank, emphasized the urgent need for Africa to devise innovative solutions to address its substantial energy deficit.
Oramah made these remarks during the National Oil Companies Forum at the ongoing Nigeria International Energy Summit in Abuja on Wednesday.
Represented by Mr. Haytham ElMaayergi, Executive Vice President of Global Trade Bank, Prof. Oramah expressed concern over the paradox of 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.
He highlighted the continent’s limited traditional energy infrastructure but underscored that this presents an opportunity for leapfrogging to more efficient 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 revealed that Afreximbank would take on the responsibility of managing the proposed Africa Energy Bank to maximize its likelihood 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.