Country Manager, VITOL, Chibuzor Ifeanyi, has said that Nigeria and other African countries only get $35 billion annually out of the $200 billion requirement to aid the continent’s energy and climate-related goals. He decried that this was grossly inadequate.
He spoke yesterday during a webinar with the theme: “Interrogating Just & Inclusive Energy Transition for Africa,” organised by OTL, Africa Downstream to mark the International Day of Clean Energy. Ifeanyi said: “Essentially the trend that has been seen over the 10 to 15 years, looks at a mix of public and private financing.
Public financing here refers to government backed financing. Private financing are those FDIs who go for green and brown field projects. A combination of these gives about $35 billion to the continent on an annual basis.
“Doyin mentioned $200 billion that is required. You can see that the shortfall is quite significant. Do not forget that financing does not need to be cash, it can be concessions, commercial Capital, insurance, guarantees of some sorts that basically try to attract investments and de-risk these projects themselves.
“The general outlook basically is: You have G 20 nations led by China, you have the European countries, France, Italy, the US, Russia, UK, Japan and surprisingly India. These are the main countries that attract financing and send financing to Africa, in addition to the main group such as the World Bank who takes the lead and African Development Bank, etc.”
Chief Executive Officer, OTL, Africa Downstream, Mrs. Joyce Akabogu expressed delight over the $5billion Africa Energy Bank. Akabogu, who was the moderator of the session, called for greater collaborative efforts of stakeholders to address climate issues and meet the energy goals of Nigeria and the continent.
She said: “We have recently witnessed the birth of the African Energy Bank with an objective to contribute to universal access to energy in Africa while simultaneously managing the global transitions to alternative energy sources. This year will mark the international year for clean energy amidst surging investment and consumption.”
Investment Professional, Siemens Energy Ventures, Adedoyin Pearse, recalled that $200 billion annually was required for Nigeria and other African countries to be close to the universal energy target. She said that there is the need for a human face on energy transition and decried electricity access poverty in Africa.
She said: “When we talk about a just and inclusive transition, particularly within the context of Africa, it is about transiting in an equitable, in a fair manner and in a manner where nobody is left out considering the nuisance of the African context.
Africa, we are the least contributing to the global carbon emissions. We account just about 3.4% globally. Second, our electrification rate is very high. Energy poverty is very high and bearing that background, we are not just going to wake up.
