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Warlick, shown speaking at the AEW conference on October 18 (Photo: Twitter/@AmbMaryWarlick)
Thus far, Warlick continued, African countries export credit agencies (ECAs) and IFIs have
have not been able to realise the full potential of come under pressure to halt funding for fossil
their oil and gas resources. This is because they fuel projects on the grounds that they will con-
have not had adequate financial support, infra- tribute to future carbon dioxide emissions. Some
structure, technology or upstream, midstream commercial banks and ECAs have pledged to do
and downstream activity, she said. so, while a number of IFIs have opted to shift
At the same time, she noted, the continent their emphasis to renewable energy projects.
is plagued by widespread energy poverty, with Afreximbank is one of the IFIs that has not
more than 600mn of its people lacking access to withdrawn from fossil fuels. And according to
electricity and more than 900mn of its people Gbenga Komolafe, the CEO of the Nigerian
lacking access to regularly cooked food. Even Upstream Petroleum Regulatory Commission
though the number of people supplied with elec- (NUPRC), it intends to team up with the African
tricity rose between 2013 and 2019, it declined Petroleum Producers Organisation (APPO) to
between 2019 and 2021, she stated. establish an Africa Energy Bank.
Warlick emphasised the human cost under- Speaking at the first annual conference of
lying these figures, describing conditions as PENGASSAN, Nigeria’s main oil and gas work-
“truly staggering.” She also pointed out that ers’ union, in Abuja on October 19, Komolafe
African states were facing an even bigger burden said African countries had to find their own
– beyond ongoing problems such as droughts, ways to finance fossil fuel projects as outside
food insecurity, poverty and extreme weather – lenders pulled back.
now that the war between Russia and Ukraine “We must begin to develop local innova-
had caused turmoil on global energy markets, tive financing solutions to develop our huge
pushing prices upward. gas resources as the number of international
traditional investors have dropped drastically,”
Africa Energy Bank the NUPRC head was quoted as saying by The
Around the world, many commercial lenders, Nation (Nigeria). ™

Higher oil prices helping Angola

accelerate debt payments to China

ANGOLA ANGOLA is taking advantage of higher oil A stronger economy and the government’s
prices by speeding up debt payments to China, prudent policies have allowed the southern
its largest creditor. Africa’s second-largest crude African republic to regain its financial footing,
producer owes China $18bn, about 40% of its with the kwanza strengthening by 21% against
total external debt, after settling loans totalling the US dollar this year, Macao News reported
$1.32bn this year. on October 18.

P8 www. NEWSBASE .com Week 42 20•October•2022