A delegation from the Africa Finance Corporation will be shaping high-level discussions around accelerating investment in oil and gas exploration and production as the continent pursues making energy poverty history by 2030
JOHANNESBURG: The African Energy Chamber (AEC) is proud to be hosting a delegation from pan-African multilateral development financial institution, the Africa Finance Corporation (AFC), during the African Energy Week (AEW) conference and exhibition, Africa’s premier event for the oil and gas sector which will take place from October 18-21 this year in Cape Town. Representing one of Africa’s leading financial institutions driving socioeconomic growth through improved access to financing for the entire energy value chain, the AFC will be a key participant and driver regarding all discussions on financing Africa’s energy future.
Since the organization’s establishment in 2007, the AFC has played a critical role in maximizing energy development across Africa by offering project development, technical advisory services, corporate finance and financial advisory services, supporting the continent’s diverse energy sector through partnerships with 34 countries, the private sector and international partners. As a result, $35 billion worth of projects have been deployed across some 35 countries and over 2GW of power generation capacity added, all thanks to AFC funding.
With Africa urgently needing to improve investment across the energy sector – specifically regarding oil and gas exploration, production and infrastructure deployment as targets to lift over 600 million people out of energy poverty whilst providing access to clean cooking to some 900 million are set – the role of domestic and innovative solutions institutions such as the AFC provides is key. In the 2022 context, improving access to financing is even more prevalent, particularly as global investment in African oil and gas continues to decline owing largely to energy transition trends. As such, the AFC continues to be instrumental in the fight to make energy poverty history across the continent by 2030, with the group spearheading some of Africa’s major oil and gas projects through capital provision.
In July 2022, the AFC committed to investing up to $1 billion across commodities, rail and power sectors across the continent’s largest oil producer, Angola, following injecting $100 million towards the construction of the Cabinda Refinery to boost domestic production. Additionally, in partnership with Swiss energy firm, Brahms Oil Refineries, the AFC is also funding the development of an oil and gas refinery and storage terminal in Guinea.
Meanwhile, in the renewables sector, as Africa seeks to fast-track the diversification of its energy mix for energy security whilst remaining a climate champion, having added 16 new member countries in the past four years, the AFC remains a reliable partner for African projects. In July 2022, the institution embarked on Africa’s largest renewables deal, acquiring a 100% stake in independent power producer, Lekela Power, thereby assuming its massive 2.8 GW portfolio, in partnership with Egyptian energy firm, Infinity Group. With the AFC targeting to double Lekela Power’s operating assets in the next four years, the group is making significant progress to electrify the continent. What’s more, in 2020, the AFC also committed $45 million for the construction of Angola’s first solar photovoltaic power plant.
“Electrifying the continent, ensuring energy security and accelerating industrialization will take significant capital as well as collaboration between all energy players in Africa. For years, the continent has relied on foreign investment to drive energy developments, however, in 2022, African financial institutions are playing an increasingly important role. As such, AEW 2022 is committed to improving investment across the entire African energy sector and value chain, thereby kickstarting a new era of development that will enable the continent to make energy poverty history by 2030. With the help of institutions such as the AFC, Africa will be well equipped to become energy independent and resilient,” states NJ Ayuk, Executive Chairman of the AEC, adding that, “We are proud to host a delegation from the AFC at AEW 2022 and look forward to productive, market-driven dialogue led by the institution itself.”
At AEW 2022, representatives from the AFC will participate in various forums and investor summits, shaping discussions on how to improve access to financing, driving an African-adapted just energy transition dialogue while making a strong case for oil and gas funding in 2022 and beyond. Uniting energy leaders, global financiers and public and private sector executives for four days of networking, AEW 2022 represents the perfect platform to sign deals, form partnerships and kickstart new project developments back by AFC funding and knowledge.