With over 600 million Africans reportedly lacking access to modern energy, this has created a challenge for stakeholders, especially African governments to evolve strategies to raise funding to cover the underserved segment of the continent with modern energy that will improve their livelihood.
This was the focus of the African Local Content Investment Forum (ALCIF) hosted by the Nigerian Content Development and Monitoring Board (NCDMB) with the theme, “Evolving a Pan-African Strategy towards Sustainable Funding of Africa Oil and Gas Projects.”
The forum which attracted stakeholders in the oil and gas sector explored the necessity of bridging the energy gaps in the sector and the imperative of securing the needed funds to drive the initiative.
Minister of State for Petroleum, Mr Timipre Sylva who was represented by the Permanent Secretary in the Ministry, Dr Nasir Gwarzo disclosed that the African continent’s energy demand would rise by 40 per cent in 2035 which means that about 1bn Africans might be in need of energy.
This is a challenge he threw to stakeholders including oil and gas producers to bridge the funding gaps and improve the lives of the populace.
The African Export-Import Bank (Afreximbank), which was a participant at the forum, said it has released 700 million Eurobond to the African continent for the development of the oil and gas sector last week.
Managing Director, Afreximbank, Dr. Benedict Oramah, said Africa has about 125 billion proven crude oil reserves and hundreds of trillions of proven gas reserves, but regretted that over 600m people of the continent’s 1.3bn people are still without access to energy.
Oramah reiterated that the Afreximbank remained keen to support the oil and gas industry on the continent in order to achieve its balance.
Secretary General, African Petroleum Producers’ Organization (APPO). Dr Omar Farouk Ibrahim, said in view of the energy transition that the world is experiencing, there was the need for the continent to re-strategise and “come up with a new model” to avoid losing the 125bn proven crude oil reserves and the hundreds of trillions of proven gas reserves as stranded assets which could have been deployed into providing energy for the people.
He said, “The new model, sees in greater cooperation and collaboration among African oil and gas producing countries, the only way to survive the challenges posed to Africa by the energy transition agenda.
The Executive Secretary of NCDMB, Engr. Simbi Wabote said the quest for energy transition, as it is being advocated in some European countries and other parts of the world is now taking centre stage and as this trend progresses, the hydrocarbon resources in Africa are becoming endangered resources.
He said, “We need to build on the good initiatives already in place to increase the pool of funds available for hydrocarbon projects and also motivate credible investors to pick interest in the industry.”
