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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.



       P4                                       www. NEWSBASE .com                        Week 41   13•October•2022
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