Featured, Oil & Gas
…Says unless Africa has access to aggregate funding resources that it controls, “our aspiration in the area of energy security and energy transition will remain an aspiration.
By Anthony Isibor
PROF Benedict Oramah, President, African Export-Import Bank, Afreximbank, has charged the National Oil Companies, NOCs, to be more intentional in its drive towards achieving a more sustainable energy future for the continent.
Prof Oramah, who was represented by Haithan ElMaayergi,, Executive Vice President, Global Trade Bank, made the call at a panel session on NOC’s forum during the ongoing Nigerian International Energy Summit, NIES in Abuja.
He expressed optimism that the NOCs have all what it takes to become an energy powerhouse, but to achieve that they must be intentional in their approach in pursuing energy security.
He urged them to subscribe only to an energy transition approach that is just for Africa and also build internal funding capabilities required to finance its energy transition.
He wondered why Africa with a huge oil and gas resources, a bulk of its countries still lacks access to reliable and affordable source of energy and called on them to be bold and courteous in implementing the decisions that it has taken on sustainable energy security and financing.
Prof. Oramah also called on various African governments to work on its environment to ensure that it is conducive for investment in energy resources.
“As we look at the issue of energy security, it’s important for Africa to pay close attention to energy transition. We believe that the climate change is real and as Africans we are already seeing this and seeing the consequences.
“It is important, however, for Africa to pursue a just transition approach, which ensures that narrative around transition considers Africa prospective.
“It is a fact that Africa has contributed very little to carbon emission and it’s also true that Africa is a victim with regards to the consequences of the climate change. Although the continent contributed around 4% of the greenhouse emission, it bears the burden of most devastating effects of climate change, floods, draughts, heat waves and so on.
“That said, we should not be blind about the possibilities that the energy transition also opened up a major number of opportunities for us as a continent. With the abundance of battery-making minerals along solar, wind, hydrogen, thermal energy resources, Africa has the chance to become a work leader in this space.
“The continent lacks extensive traditional energy infrastructure, but actually this presents an opportunity for leapfrogging in a more efficient way to our new world technology.
“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 a corresponding impact on exploration and production.’’
The Afreximbank boss, however, noted that it has intervened in a big way, and has quickly become the largest financer of oil and gas deeds in the continent exceeding an excess of 30 billion US dollars.
‘’We must also think about energy self-sufficiency despite producing oil and gas that we need in the continent, we are still importing excessive amount of refined petroleum products, and this is because of the inadequate defining capacity in the continent.
Afriexim Bank intervened in this area and helped improve the situation. The bank currently has refinery capacity and access of 1 million barrels in the region in the area in Angola with funding on access of 4 billion dollars.
“We aspire to refine more than we consume and we will be putting us in a position to export the product to other parts of the world,” he said.
He also revealed that the Afreximbank and the African Petroleum Producer Organization, APPO, are in the final stages of setting up the Africa Energy Bank.
“The Africa Energy Bank is being set up under multi-lateral financial institution agreement which will focus on providing funding for the energy sector in the continent, and it will be structured to ensure African ownership and control. Again, AfreximBank is committed to helping manage and operate Africa Energy Bank to ensure that it has the best possible chances of success.
“The strategic goal of the Africa Energy Bank is to play 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 oil and gas sector,’’ he said.
He also called for collaborative support from all stakeholders for the Africa Energy Bank to get off the ground.
“We will need support from members of the state to achieve the level of capitalization that is adequate support for the energy sector,” he added.
A.I
Tags: Afreximbank APPO Prof Benedict Oramah
