AEW 2024 to host Energy Finance Summit with focus on securing new investments in Africa

The upcoming African Energy Week (AEW): Invest in African Energy 2024 conference, taking place in Cape Town from November 4 – 8, will focus on securing new investments for Africa in a shifting global energy landscape, the African Energy Chamber (AEC) announced on August 13.

The annual conference and networking event draws interest from project operators, financiers, technology providers and governments. A significant feature of this year’s conference is the Energy Finance Summit.

Following the recent establishment of the Africa Energy Bank (AEB) by the African Export-Import Bank (Afreximbank) and the Africa Petroleum Producers’ Organisation (APPO), Africa is expected to accelerate the development of energy projects by bridging its infrastructure funding gap.

The Energy Finance Summit will be hosted by the AEW 2024 in partnership with Afreximbank, led by its president and chairman Benedict Oramah, and S&P Global Commodity Insights.

The AEC says various sessions of the summit will outline the latest commitments from major development finance institutions (DFIs). A session on Financing Energy Infrastructure will concentrate on attracting more public and private funding for major energy infrastructure projects designed to enhance energy access and contribute to the continent’s sustainable development goals (SDGs).

Earlier in August, the African Development Bank (AfDB) approved a $500mn loan to help Nigeria develop 250 GW of installed electricity capacity by 2050. Additionally, the AfDB provided a $135mn package to the Union of the Comoros to fund a significant maritime and regional trade project. In partnership with the World Bank, the AfDB also recently revealed plans to invest $30bn over the next five years to enhance electricity access for 300mn people across Africa.

A session on Financing New Energy Projects in Africa will explore the opportunities and challenges of renewable energy initiatives on the continent in the context of high interest rates and complex regulations.

In July, Guinea-Bissau secured a $35mn grant for its first 30-MW solar power plants, battery energy storage systems (BESS) and transmission grid upgrades. Furthermore, the Islamic Corporation for the Insurance of Investment and Export Credits teamed up with British multinational bank Standard Chartered to launch a $111mn off-grid solar street light project in Senegal.

According to the AEC, key speakers at this session include Argentil Capital Management managing partner Olumide Ogunfowora, and BP Venture's regional managing director for Europe and Africa Kevin Rodrigues.

Despite the global shift towards clean energy investments, African oil and gas projects continue attracting private capital, says the AEC.

In July, an independent upstream company Invictus Energy secured $10mn from private equity firm Mangwana Capital and Zimbabwe’s sovereign wealth fund, Mutapa Investment Fund, to develop the Cabora Bassa oil and gas project in Zimbabwe.

Additionally, Nigerian integrated energy solutions provider Oando obtained a loan of $800mn from Afreximbank to acquire Eni’s local subsidiary, Nigerian Agip Oil Company (NAOC). The acquisition enables Oando to increase its participating interest in the Northern Niger Delta and boost oil and gas activities in the region, the AEC reports.

According to the AEC, other sessions planned for the Energy Finance Summit during the AEW2024 include Developing a Sustainable Finance Strategy for African Downstream, Spotlight on African M&A and ESG Financing in the African Energy and Oil & Gas Sector.

“These sessions will explore the roles of non-traditional financing tools, strategic partnerships and the integration of ESG criteria in unlocking foreign investment across Africa’s energy value chain,” the AEC said.