While Africa’s vast hydrocarbon resources present an opportunity for the continent to drive socioeconomic development while also providing a sound solution to address global energy challenges, inadequate investment within the energy value chain continues to restrain the maximization of resources. In this regard, African financial institutions such as the Africa Finance Corporation (AFC) will be key for boosting oil and gas exploration and production, infrastructure development and monetization, as well as achieving the continent’s sustainable development goals.
The Pan-African multilateral development financial institution has joined the 2023 edition of the African Energy Week (AEW) conference as a Bronze Sponsor. Serving as Africa’s premier event for the oil and gas sector, AEW 2023 will take place from 16-20 October in Cape Town. As one of the key drivers of private sector-led infrastructure investment across Africa, the participation of the AFC as a Bronze Sponsor at this year’s event will be crucial for shaping critical discussions around investment trends across Africa’s energy sector.
Addressing the growing investment gap while showcasing the best financial solutions for the continent will actively advance Africa’s energy sectors, with the AFC poised to provide pragmatic solutions to infrastructure deficits and challenging operating environments in the region. Leveraging Africa’s immense resources – estimated at 125.3 billion barrels of crude oil and 620 trillion cubic feet of gas as well as sizeable mineral and renewable resources – serves as the only way for the continent to make energy poverty history by 2030.
Having disbursed an estimated $35 billion in funding for projects rolled out across 35 countries while facilitating the addition of 2 GW of power generation capacity in Africa, the AFC remains a reliable partner for future energy developments throughout the continent. The AFC recently played an important role in the development of a landmark wind farm in Djibouti, which is poised to contribute directly to the East African country’s ambition of becoming the first African nation to rely entirely on renewable sources for electricity by 2035. Furthermore, an additional 45 MW of renewable energy in Djibouti has already been planned by a consortium of investors, which will be led by the AFC.
Meanwhile, the AFC has partnered with innovative financial solutions producer CPF Financial Services to jointly target infrastructure investment in Kenya. Through the partnership, the AFC and CPF Financial Services will collaborate in identifying, developing, and co-financing infrastructure projects directly aligned with the country’s development roadmap. The institution has also played a key role in the development of Uganda’s downstream sector, investing $95 million to finance petroleum storage tanks, truck loading bays, a jetty, a 50-truck-capacity parking lot, and two self-propelled barges for operation on Lake Victoria, providing a more efficient and sustainable alternative to previous transportation methods for the extractives sector in the East African country.
The AFC has also partnered with the Government of Senegal to fund the development of the country’s landmark Sangomar oil field. Through the partnership, the AFC will invest $53.5 million to help Senegal’s emerging oil and gas industry, thus improving energy access and security to its population. On the green energy front, the institution has been instrumental in shaping Africa’s approach to a just and inclusive transition, supporting the continent’s contribution to combatting climate change through the localization of production, minimizing emissions, redeveloping infrastructure, and supporting reforestation and renewable energy development.
“The AFC has been instrumental in ensuring that African projects are led by the African people and making sure that the energy transition is implemented on African-led terms. Organizations such as the AFC continue to be instrumental in financing energy projects here in Africa and leads the way in eradicating energy poverty on the continent,” states NJ Ayuk, Executive Chairman of the African Energy Chamber (AEC).
The AFC’s participation as a Bronze Sponsors speaks to the caliber of the event as the premier meeting place for Africa’s energy sector. The institution’s engagement in panels and contributions to dialogue will lay the foundation for new deals to be signed.