How Can Africa’s Energy Sector Attract More Investment?
Attracting institutional investors and pensions funds to Africa’s energy transition remains a challenge in a world in flux. But the problem may be a lack of bankable projects rather than finance.
The announcement of a new African Energy Transition Bank in mid-May has highlighted the problems facing energy financing on the continent.
The bank’s two backers, the African Export-Import Bank (Afreximbank) and the African Petroleum Producers Organisation (APPO) said they had been forced to establish the new institution because of “the co-ordinated withdrawal of international trade and project financing” for Africa’s oil and gas industry.
The director of client relations at Afreximbank, Rene Awambeng, told the signing ceremony in Luanda, that “It will be an African-led solution to address the threat posed to the African oil and gas industry from the shortages of funding.”
Ownership of the new bank will lie with the 15 member countries of APPO, while management will be the responsibility of Afreximbank.
Photo courtesy of andreas160578.