The African Energy Chamber (AEC) and the African Export-Import Bank (Afreximbank) have signed a Memorandum of Understanding (MoU) to boost private sector investments across Africa’s oil and gas industry on the first day of the African Energy Week (AEW) conference and exhibition, which runs from October 18 to 21 in Cape Town.
The MoU, signed by AEC Executive Chairman NJ Ayuk and Afreximbank President Prof. Benedict Oramah, 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 entry 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.”
Mr. Oramah added that “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, 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.”
With global energy transition-related policies currently disturbing the 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 this.
AEC’s commitment to 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.