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Africa needs $200bn yearly energy investment — IPPG
•Africa Energy Bank to start operations in October — Farouk
By Udeme Akpan
Africa needs more than $200 billion annually in energy investment by 2030 to develop oil and gas, expand electricity generation and distribution, and grow clean energy, Chairman of the Independent Petroleum Producers Group (IPPG), Adegbite Falade, has said.
Falade, who spoke yesterday at the opening ceremony of Africa Oil Week (AOW) in Accra, Ghana, said: “Africa currently attracts just over half of the required investment.”
He added: “Africa, which accounts for about one-fifth of the world’s population, attracts only about three per cent of global energy investment.”
“If Africa is to secure its energy future in an era of international capital retreat, we must look inward and build our own institutional and financial resilience,” Falade said.
He identified the Africa Energy Bank (AEB) as critical to closing the financing gap, noting that its establishment by the African Petroleum Producers Organisation (APPO) and Afreximbank was an important step toward financing Africa’s energy future.
“The AEB is purpose-built to bridge the upstream and midstream financing gap left by traditional global financiers,” he said.
“This is Africa’s clearest statement yet that we intend to finance our own hydrocarbon future, rather than wait indefinitely for others to do so,” Falade added.
He, however, urged African producers to develop bankable projects, saying: “It is imperative African producers actively originate high-impact, bankable projects.”
Falade also called for increased investment in gas infrastructure.
“Today, natural gas already generates around 40 per cent of this continent’s electricity,” he said, noting that Africa has less than 50,000 kilometres of oil and gas trunk pipelines, compared with more than 200,000 kilometres in Europe.
“Reserves without pipelines are simply stranded molecules benefiting no one,” he said.
Meanwhile, former APPO Secretary-General, Dr. Omar Farouk, said the AEB is expected to commence operations in October 2026.
“All hurdles have been overcome and I can confidently say that the bank has come close to starting operations,” Farouk said.
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