Page 15 - DMEA Week 37 2022

DMEA NEWS IN BRIEF DMEA

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However, Karoo shale gas reserves, two recent to financing for the entire energy value chain, the Meanwhile, in the renewables sector, as
local gas discoveries and two new finds in AFC will be a key participant and driver regard- Africa seeks to fast-track the diversification of its
Namibia could transform South Africa’s reliance ing all discussions on financing Africa’s energy energy mix for energy security whilst remaining
on depleting local gas reserves and gas imports. future. a climate champion, having added 16 new mem-
Price and Demand: The Russia-Ukraine Since the organisation’s establishment in ber countries in the past four years, the AFC
war has propelled oil prices to over $100 a bar- 2007, the AFC has played a critical role in max- remains a reliable partner for African projects.
rel and sent fuel prices rocketing. Government imising energy development across Africa by In July 2022, the institution embarked on Afri-
intervened to temporarily reduce the fuel levy offering project development, technical advi- ca’s largest renewables deal, acquiring a 100%
and has proposed deregulating the petrol price. sory services, corporate finance and financial stake in independent power producer, Lekela
While fuel demand is recovering, fuel sales have advisory services, supporting the continent’s Power, thereby assuming its massive 2.8-GW
yet to recover to pre-pandemic levels. Diesel diverse energy sector through partnerships with portfolio, in partnership with Egyptian energy
demand surged, mostly driven by Eskom’s diesel 34 countries, the private sector and international firm, Infinity Group. With the AFC targeting
purchases. Prices have been tempered by Chi- partners. to double Lekela Power’s operating assets in the
na’s lockdowns and the release of strategic oil As a result, $35bn worth of projects have been next four years, the group is making significant
reserves by oil-producing countries. deployed across some 35 countries and over progress to electrify the continent. What’s more,
Refineries Shutting Down: South Africa is 2GW of power generation capacity added, all in 2020, the AFC also committed $45mn for the
refining less crude oil and only two refineries thanks to AFC funding. construction of Angola’s first solar photovoltaic
remain operational as it has become increas- With Africa urgently needing to improve power plant.
ingly expensive to operate refineries and more investment across the energy sector – specifi- “Electrifying the continent, ensuring energy
affordable to import refined product. The only cally regarding oil and gas exploration, produc- security and accelerating industrialisation will
refineries operating are a crude refinery and tion and infrastructure deployment as targets take significant capital as well as collaboration
a synfuels refinery after the biggest crude oil to lift over 600mn people out of energy poverty between all energy players in Africa. For years,
refinery ceased refining at the end of March whilst providing access to clean cooking to some the continent has relied on foreign investment
2022. One refinery is set to come back online in 900mn are set – the role of domestic and inno- to drive energy developments, however, in
late 2022. vative solutions institutions such as the AFC 2022, African financial institutions are playing
ResearchAndMarkets.com, September 12 2022 provides is key. In the 2022 context, improving an increasingly important role. As such, AEW
access to financing is even more prevalent, par- 2022 is committed to improving investment
Africa Finance Corp. ticularly as global investment in African oil and across the entire African energy sector and value
gas continues to decline owing largely to energy chain, thereby kickstarting a new era of devel-
planning to discuss access transition trends. opment that will enable the continent to make
As such, the AFC continues to be instrumen-
energy poverty history by 2030. With the help
to financing at African tal in the fight to make energy poverty history of institutions such as the AFC, Africa will be
across the continent by 2030, with the group well equipped to become energy independent
Energy Week 2022 spearheading some of Africa’s major oil and gas and resilient,” states NJ Ayuk, Executive Chair-
man of the AEC, adding: “We are proud to host a
projects through capital provision.
The African Energy Chamber (AEC) is proud to In July 2022, the AFC committed to investing delegation from the AFC at AEW 2022 and look
be hosting a delegation from pan-African mul- up to $1bn across commodities, rail and power forward to productive, market-driven dialogue
tilateral development financial institution, the sectors across the continent’s largest oil producer, led by the institution itself.”
Africa Finance Corporation (AFC), during the Angola, following injecting $100mn towards the At AEW 2022, representatives from the AFC
African Energy Week (AEW) conference and construction of the Cabinda Refinery to boost will participate in various forums and investor
exhibition, Africa’s premier event for the oil and domestic production. Additionally, in partner- summits, shaping discussions on how to improve
gas sector which will take place from October ship with Swiss energy firm, Brahms Oil Refin- access to financing, driving an African-adapted
18-21 this year in Cape Town. Representing one eries, the AFC is also funding the development just energy transition dialogue while making a
of Africa’s leading financial institutions driving of an oil and gas refinery and storage terminal strong case for oil and gas funding in 2022 and
socioeconomic growth through improved access in Guinea. beyond.

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