Afreximbank Commits $30bn Investment to Oil and Gas in Africa, Nigeria gets 60% Share

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In a major announcement on Wednesday, the African Export-Import Bank (Afreximbank) revealed its status as the largest financier of oil and gas projects across the African continent. The bank has committed a substantial investment of $30 billion to industry projects, with Nigeria securing 60% of this funding despite a decrease in global financing for hydrocarbon ventures in Africa.

Speaking at the National Oil Companies Forum during the ongoing Nigeria International Energy Summit in Abuja, Afreximbank’s President, Prof Benedict Oramah, emphasized the urgent need for Africa to address its significant energy deficit through innovative solutions. He expressed concern over the paradox that, despite the continent’s abundant oil, gas, and renewable resources, a considerable portion of the population still lacks access to reliable and affordable energy.

Represented by Mr. Haytham ElMaayergi, Executive Vice President of Global Trade Bank, Prof. Oramah highlighted the lack of extensive traditional energy infrastructure in Africa as an opportunity for leapfrogging towards more efficient renewable technologies. He underscored the crucial role of adequate funding resources, emphasizing that the withdrawal of international banks from oil and gas sector financing has severely limited investments and impacted exploration and production.

Afreximbank’s significant intervention has positioned it as a key player, emerging as the primary financier of oil and gas deals on the continent, exceeding $30 billion in support. Notably, Nigeria has been a major beneficiary, receiving nearly 60% of the total funding in the sector.

Prof. Oramah further disclosed Afreximbank’s management role in the proposed Africa Energy Bank, aiming to shape the continent’s energy landscape through strategic partnerships with African and international financial institutions. He emphasized the bank’s predominantly African ownership and control as a factor enabling its impactful contributions to the oil and gas sector.

Looking ahead, Afreximbank seeks support from member states to ensure the successful launch and capitalization of the Africa Energy Bank, further solidifying its commitment to fostering sustainable financing in the energy sector.

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