By Onome Amuge
The African Energy Chamber (AEC) and the African Export-Import Bank (Afreximbank) have signed a Memorandum of Understanding (MoU) to enhance private sector investments across Africa’s oil and gas industry.
The MoU was signed by NJ Ayuk, the executive chairman of the AEC, and Benedict Oramah, president, Afreximbank, during the first day of the ongoing African Energy Week (AEW) conference and exhibition, which runs from October 18-21 in Cape Town, South Africa.
The new development is expected to accelerate increased participation of private sector investors and local service companies in boosting capital across Africa’s entire hydrocarbon industry, with the AEC leading various mechanisms aimed at simplifying the entrance and expansion of financial institutions.
Speaking at the signing ceremony, Ayuk noted that the deal is meant to encourage private sector individuals to drive energy sector growth in the continent.
“I would like to thank Afreximbank for bringing us an opportunity to bring more private sector players across the African energy industry. With this MoU, we can get guys working on mini grids and local service and financing companies and get them into boosting industry growth,” he added.
On his part, Oramah expressed excitement entering an MoU with the AEC, noting that the bank had for long searched for a connecting voice with an intellectual depth and capacity to do research.
He maintained that working with the AEC will enable Afreximbank to begin to make big transformations towards ensuring Africans gain more access to energy, thereby reducing the number of people with no access to clean cooking.
“As we launch the African Energy Bank, we look at the AEC becoming part of the instrument which we will use finance to change the course of history regarding the way energy access is on the continent,” he said.
With global energy transition-related policies currently disturbing the flow of investments across the continent’s hydrocarbon industry, the MoU between the AEC and Afreximbank is expected to play a key role in transforming the industry.
Prior to the event, AEC had stated its commitment towards making energy poverty history by 2030. The chamber is optimistic that its vast experience in uniting African governments, energy companies and investors with global stakeholders will be crucial in accelerating their participation and collaborations with Afreximbank in energy financing and development.
