The African Energy Chamber (AEC) and the African Export-Import Bank (Afreximbank) on Tuesday signed a Memorandum of Understanding (MoU) to enhance private sector investments across Africa’s oil and gas industry.
The pact was sealed by the Executive Chairman of the AEC, NJ Ayuk, and President of Afreximbank, Prof. Benedict Oramah, during the first day of the African Energy Week (AEW) conference and exhibition scheduled to hold from today to October 21 in Cape Town, South Africa
According to its terms, the MoU will pave the way for 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.
Commenting during the signing ceremony, Ayuk said; “I believe the deal is not for the Chamber but for private sector individuals that continue to drive energy sector growth. 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
In his remarks, the AfreximBank boss said: “We are very pleased to be entering an MoU with the AEC. For so long, we have searched for a connecting voice that is courageous, that is not afraid to say what we want to say to others, that has an intellectual depth and capacity to do research.
“We believe by working with the AEC, we can begin to make big transformations to bring energy to our people and reduce the number of people with no access to clean cooking and energy except poverty.
“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”, Oramah added
Industry experts believe that with global energy transition-related policies currently disrupting huge flow of investments across the continent’s hydrocarbon industry, the MoU between the AEC and Afreximbank is expected to play a key role in changing the narrative.
AEC’s commitment in making energy poverty history by 2030 and 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 developments.
