African Oil producers have expressed support for the establishment of an energy bank to facilitate the financing of major oil and gas projects in the continent.
The proposed energy bank is a decision being considered after Western nations threatened to halt overseas fossil fuel financing.
The decision has sparked alarm among Africa’s largest hydrocarbon exporters. But plans are afoot to create a new pan-African energy bank that can tackle waning oil and gas investment and drive-up production across the continent.
The Nigerian National Petroleum Corporation (NNPC) Limited, and the African Export-Import Bank (Afreximbank) are exploring the idea of establishing a so-called ‘African Energy Bank.’
Afreximbank could not be reached for comment about the proposal, but the move has been cheered by industry lobby group, the African Energy Chamber, which says the value of such a bank ‘cannot be overstated.’
“Capital from foreign countries and companies will always be welcome, however regarding oil and gas, it isn’t reliable,” the group said in a statement.
“Therefore, through institutions such as the African energy bank, local oil and gas companies will be able to boost new and existing project developments; ensure reliable financing channels for oil and gas; and position the continent as a net exporter of hydrocarbons, all while creating critical capital opportunities for renewable energy projects,” it added.
