Pan-African finance institution the African Export-Import Bank (Afreximbank) recently announced that it will provide $650 million in funding for multinational energy company Oando Plc’s acquisition of exploration and production company the Nigerian Agip Oil Company. The loan includes a senior and junior reserved-based lending facility to the tune of $500 million and $150 million, respectively, and will see Oando Plc acquire 100% of the shareholding interest in the Nigerian company from energy supermajor Eni.
Representing one of Africa’s biggest financiers and trade facilitators, Afreximbank is committed to advancing energy security and sustainable investment across the African continent. The financial services provider plays an important part in getting large-scale projects off the ground while contributing to the continent’s development objectives. As such, a delegation from Afreximbank will join this year’s African Energy Week (AEW): Invest in African Energy 2024 conference – taking place in Cape Town from November 4-8 – which will be led by the institution’s President and Chairman Dr. Benedict Oramah. In addition to participating in a suite of panel discussions, investor summits and networking forums, Dr. Oramah will deliver a keynote address during this year’s event.
AEW: Invest in African Energy is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit www.AECWeek.com for more information about this exciting event.
Since his appointment to Afreximbank President in 2015, Dr. Oramah has played an instrumental role in ensuring the bank’s investments align with Africa’s sustainability objectives. Amidst the ongoing global energy transition, Dr. Omarah has been an outstanding advocate for Africa’s oil and gas industry, leveraging his expertise to help eradicate energy poverty and create a pathway to a stronger economic future for the continent. Prior to beginning his career with Afreximbank in 1994, he was an assistant research manager at export credit agency the Nigerian Export-Import Bank. He is a published author and frequent speaker at trade finance conference around the world.
With the bank looking at doubling its investments in African energy to well over $60 billion within the next five years, countries across the continent are well positioned to secure the capital they need to grow their respective economies on the back of sustainable energy. Poised to address the funding challenges faced by Africa’s oil and gas industry, Afreximbank has worked with pan-African organization the African Petroleum Producers Organization (APPO) to establish an African Energy Bank (AEB) to provide funds for the continent’s energy projects.
Last month, APPO selected Abuja, Nigeria to host the headquarters of the AEB . With an initial share capital of $5 billion, the bank will focus on financing energy projects across the continent, encompassing both fossil fuels and renewable energy sources. Following the bank’s announcement in November 2023, Afreximbank expressed that the financial institution will partner with over 700 banks in Africa to chart a profitable pathway for the African energy sector. As such, the selection of Abuja as the bank’s host city will not only strengthen Nigeria’s role in the African energy landscape, but will streamline funding for African projects, placing the continent on track for widespread industrialization and economic growth.
Meanwhile, poised to support project development and commerce in Nigeria, Afreximbank signed a $200 million loan facility agreement with financial services company First Bank of Nigeria in June this year. The facility aims to support the needs of clients across various industries, including oil and gas, energy, manufacturing, telecommunications and more. Furthermore, the bank announced that it will finance the development and operation of a new $234.7 million port terminal in Douala, Cameroon, following the signing of a term sheet with port infrastructure developer APD-Cameroon in June 2024.
In addition to providing financing for oil and gas projects, the bank prioritizes and advances local content, capacity building and low-carbon portfolios. At Afreximbank, Dr. Oramah leads several programs aimed at upskilling the local workforce and promoting technology transfer while accelerating intra-African trade and commerce. Recent initiatives include a $1.4 billion commitment to establish a fertilizer plant in Angola; two agreements worth $80 million with financial institution CBZ Bank to support small- and medium-sized enterprises in Zimbabwe; and a $2.25 billion loan to support global energy company the Nigerian National Petroleum Corporation in bolstering services across the petroleum value chain in Nigeria. These efforts by Afreximbank are set to advance industrialization, energy access and economic growth across the continent at a time when demand for African energy is expected to grow immensely in the coming years.
“Africa’s energy and economic future will be shaped by institutions like Afreximbank and leaders like Dr. Oramah. Under his guidance, Afreximbank has emerged as a key ally for African nations, driving significant projects and creating opportunities for industrialization, energy access and socioeconomic development. As Africa’s energy sector continues to develop, grow, evolve and gain momentum, Afreximbank will continue to remain crucial to the continent’s success,” states African Energy Chamber Executive Chairman NJ Ayuk.
At AEW: Invest in African Energy 2024, Dr. Oramah is expected to spearhead dialogue around investing in African energy, promoting local content development and driving the transfer of technology. Afreximbank’s corporate agenda aligns closely with the theme of this year’s event, Energy Growth through an Enabling Environment, and Dr. Oramah’s insights will be a valuable addition to the conference this November.
*African Energy Chamber
