Page 4 - DMEA Week 41 2022
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DMEA COMMENTARY DMEA
(Photo: Afreximbank)
Energy transition goals and
Africa’s energy realities
In a new analysis, the head of Afreximbank, which is providing financial support for the EACOP
project, provides thoughtful, balanced insights into Africa’s energy future, writes NJ Ayuk
AHEAD of the November 2022 United Nations developing parts of the world like Africa are at
Climate Change Conference (more commonly greater risk from climate change than are devel-
WHAT: known as COP27) in Egypt, Dr. Benedict oped nations.
The head of Afreximbank Oramah, president and chair of Afreximbank,
has a proposal for using has authored a thoughtful and compelling com- The need for action
oil and gas revenues mentary about the economic and social impact In his commentary, “Transiting to green growth
to finance emissions of divestment from the production of fossil fuels in fossil export-dependent economies: A path-
reduction initiatives. in Africa. way for Africa,” Oramah acknowledges that
With fossil fuel use creating 65% of green- urgent climate action is vital and that the time
WHY: house gas (GHG) emissions, divestiture is at the for foot-dragging is over.
Many banks are coming heart of the global climate change agenda, and At the same time, he doesn’t overlook the
under pressure to halt
financing for fossil fuel many Western banks are no longer financing fact that fossil fuels financed by foreign capital
projects. investments in African oil and gas. have been the economic engine of many African
Oramah is not a climate science denier nor nations.
WHAT NEXT: a fossil-fuels-at-all-cost advocate. In his paper, Nor does he neglect to mention that as major
Oramah’s African Energy he is upfront and honest about the effect rising oil companies find themselves on the receiving
Transition Bank has the temperatures have already had on the conti- end of divestment pressure and seek “less risky”
potential to build local nent, citing the devastation brought by extreme assets, investment in the continent’s oil and
capacity and alleviate weather events — disastrous rainstorms on one gas sector has fallen significantly, from $60bn
energy poverty. hand, catastrophic droughts on the other. He in 2013 to $22.5bn in 2020 by African Energy
casts a wary eye on the future, recognizing that Chamber (AEC) estimates.
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