Institutional Investor Network reposted this
𝐁𝐫𝐢𝐝𝐠𝐢𝐧𝐠 𝐀𝐟𝐫𝐢𝐜𝐚’𝐬 𝐄𝐧𝐞𝐫𝐠𝐲 & 𝐈𝐧𝐟𝐫𝐚𝐬𝐭𝐫𝐮𝐜𝐭𝐮𝐫𝐞 𝐅𝐮𝐧𝐝𝐢𝐧𝐠 𝐆𝐚𝐩 Yesterday, at the Finance Summit opening of the African Energy Week, Mr Haytham ElMaayergi, Afreximbank's Executive Vice President, Global Trade Bank joined African Petroleum Producers' Organization (APPO) in a powerful conversation about tackling Africa's immense energy and infrastructure challenges. Key insights were shared on bridging Africa’s energy and infrastructure financing gaps. The continent faces significant challenges, with annual energy financing needs ranging from $40 billion to $100 billion and infrastructure funding shortfalls of $70 billion to $100 billion. These challenges are compounded by global pressures like COP 26 commitments and the withdrawal of international banks from African oil and gas projects. Africa, which holds 7.3% of the world’s gas reserves, can leverage natural gas as a cleaner, affordable transition fuel. The European Union’s recent recognition of natural gas as a green energy source further supports its role in Africa’s sustainable development strategy. Proposed solutions highlighted the importance of partnerships with economies in the Middle East, Asia, and Latin America to establish long-term funding. There was also a focus on enabling local financing through multilateral and development finance institutions, building capacity for local contractors, and boosting local currency financing to reduce dependency on hard currency. A major step forward is the Africa Energy Bank (AEB), a collaborative initiative between APPO and Afreximbank designed to address the energy sector financing gap. With an initial capital of $1.2 billion and a target of $5 billion within five years, AEB will operate as an independent, pan-African bank. Nigeria, a top oil and gas producer, has been strategically chosen as the host country, underscoring the commitment to meaningful progress. #Afreximbank #APPO #EnergyTransition #SustainableGrowth #InfrastructureDevelopment