2 African development banks invest $16bln in oil, gas projects
The African Export-Import Bank (Afreximbank) and the African Finance Corporation (AFC) have invested about $16 billion in oil and gas projects across Africa.
Of the total investment, $15 billion came from Afreximbank, while AFC invested over $800 million and an additional $200 million will be finalised soon, according to The Guardian.
This was disclosed at the recent African Refiners and Distribution Association conference in South Africa, where stakeholders urged companies to keep funds within the continent to finance the over $190 billion yearly energy investment requirements.
Afreximbank’s oil and gas portfolio exceeds $15 billion with a healthy pipeline across the continent, according to Rene Awembeng, the company's Global Head, Client Relations.
“Africa has not invested in its refineries or refining capacity. We’ve not invested in our storage facilities. We’ve not invested in our pipelines sufficiently to meet the demand. So, with the [COVID-19] crisis, and now the Ukraine crisis... we are in a very difficult position,” he added.
AFC has disbursed $800 million towards Africa’s refinery sector, with $210 million in its near-term pipeline, according to Shayo Olumide, AFC Senior Investment Associate.
He emphasized the need to focus on the environment, sustainability and governance when it comes to funding.
