The African Export-Import Bank (Afreximbank) and the African Financing Corporation are investing over $16 billion in oil and gas projects throughout Africa (AFC), Entrepreneurng report.
The African Refiners and Distributors Association (ARDA) convention, which is now taking place in Cape Town, South Africa, made this information public yesterday.
This occurs as conference participants urged Africans to keep money on the continent to support the roughly $190 billion in annual energy investments required on the continent.
Afreximbank is investing $15 billion of the banks’ investment, while AFC has already made over $800 million in investments and is expecting to finalize over $200 million more.
Rene Awembeng, Global Head, Client Relations at Afreximbank, claimed that the company has an oil and gas portfolio worth more than $15 billion and a strong pipeline that spans the entire continent.
Speaking outside the conference, he stressed the importance of shared infrastructure and the need for the continent to be financially self-sufficient to achieve the anticipated levels of development.
According to Awembeng, the continent is in a precarious scenario where the demand for energy keeps rising against the backdrop of an expanding population.
Awembeng stated that large infrastructure development, including refineries that would meet demand on the continent, must be prioritized and supported because the continent relies primarily on the importation of petroleum products at a time when foreign exchange demand is hovering at $100 billion annually and required energy investment annually stands at $190 billion.
According to Awembeng, the establishment of the Africa Energy Bank to finance the continent’s energy transition and fossil fuel agenda is still sacred.
Awembeng expressed his dismay that Africa continued to buy all refined products and expressed concern over the escalating costs of imported petroleum products.
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Africa hasn’t made any investments in its refineries or capacity for refining. We haven’t made any investments in our storage spaces. We haven’t made enough investments in our pipelines to match demand. Hence, we are currently in a very challenging situation due to the COVID dilemma and the current Ukraine conflict.
It is now up to African financial institutions and some development financiers, like the African Export-Import Bank, to investigate the issue since many international banks and some banks that were funding oil and gas transactions withdrew from Africa for a variety of reasons.
Hence, we are entering a situation where, in addition to the high expenses of importing refined goods, we must import grain and fertilizer to ensure our food security. As a continent, we face several difficulties in financing oil and gas, according to Awembeng.
Senior Investment Associate, AFC, Shayo Olumide stated that AFC has disbursed $800 million towards aiding Africa’s refinery sector and has an additional $210 million in its near-term pipeline when speaking on Funding Infrastructure Projects to Accelerate Africa’s Energy Revolution.
Senior Investment Associate, AFC, Shayo Olumide stated that AFC has disbursed $800 million towards aiding Africa’s refinery sector and has an additional $210 million in its near-term pipeline when speaking on Funding Infrastructure Projects to Accelerate Africa’s Energy Revolution.
In conclusion, it was noted that the need for sustainable financing should be a financial consideration that gives the environment, sustainability, and governance priority.
Source: Punch
