The African Export-Import Bank (Afreximbank) and the African Energy Chamber (AEC), as the voice of the African energy sector, have signed a Memorandum of Understanding (MoU) to enhance private sector investments across Africa’s oil and gas industry during the first day of the African Energy Week (AEW) conference and exhibition which runs from October 18, 2022, to October 21, 2022, in Cape Town.

Signed by NJ Ayuk, the Executive Chairman of the AEC and Prof. Benedict Oramah, President of Afreximbank, 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 iterated on the involvement of the private sector individuals in the deal, noting that it will boost growth in the industry.

“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.”
NJ Ayuk

Mr. Oramah, the Afreximbank President, on his part, expressed his excitement over the signing of the memorandum of understanding. He noted that the partnership will help to transform the energy sector on the continent.

“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, and which 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.”
Prof. Benedict Oramah

Meanwhile, 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.

MoU Between Afreximbank and Amni International Petroleum Development Company Limited

Moreover, Afreximbank and Amni International Petroleum Development Company Limited, a Nigerian independent oil and gas exploration and production company also signed a Memorandum of Understanding for the provision of a $600 million syndicated reserve-based lending facility. The multimillion US dollar deal was also signed during the African Energy Week conference and exhibition – Africa’s premier event for the oil and gas sector.

The deal was signed by Amni International’s Chief Tunde Afolabi and Afreximbank Global Head-Client Relations, Rene Awambeng. Both parties agreed that the financial injection will be utilized to support the energy transition.