Afreximbank Emerges as Top Financier of Oil and Gas Projects in Africa
In a notable revelation, the African Export-Import Bank (Afreximbank) announced on Wednesday that it has cemented its position as the largest financier of oil and gas projects across the African continent.
According to Afreximbank, it has invested a staggering $30 billion in various industry projects, with Nigeria receiving the lion's share of 60 percent, despite the prevailing trend of reduced global funding for hydrocarbon ventures in Africa.
Speaking at the National Oil Companies Forum during the ongoing Nigeria International Energy Summit in Abuja, Prof. Benedict Oramah, President of Afreximbank, emphasized the pressing need for Africa to devise innovative solutions to address its significant energy deficit.
Represented by Mr. Haytham ElMaayergi, Executive Vice President of Global Trade Bank, Prof. Oramah underscored the paradox of Africa's abundant natural resources juxtaposed with the widespread lack of access to reliable and affordable energy.
Highlighting the continent's opportunity for leapfrogging into more efficient renewable technologies due to the absence of extensive traditional energy infrastructure, Prof. Oramah stressed the critical role of access to adequate funding resources in achieving energy security and transition goals.
He noted that with many international banks withdrawing funding from the oil and gas sector, investment in the industry has been severely constrained, leading to a significant impact on exploration and production activities.
Afreximbank has stepped in as a major player in filling this void, emerging as the primary financier of oil and gas deals in Africa. The bank's support to the sector exceeds $30 billion, with Nigeria benefiting significantly, accounting for nearly 60 percent of the total funding.
Prof. Oramah revealed Afreximbank's strategic initiative to establish the Africa Energy Bank, aimed at shaping the energy landscape on the continent through strategic partnerships with both African and international financial institutions and investors. He emphasized the need for considerable support from member states to ensure the success and adequate capitalization of the proposed Africa Energy Bank.
As Africa continues its quest for energy security and transition, Afreximbank's pivotal role in financing oil and gas projects underscores the importance of innovative financial mechanisms in driving sustainable development across the continent.
