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Afreximbank Talks Energy Projects Financing at AEW 2024
At Africa Energy Week: Invest in African Energies 2024, Helen Brume, Director of Project & Asset-Based Finance at Afreximbank, presented the bank’s strategic initiatives for financing energy projects across Africa.
“With a mandate to promote trade and infrastructure on the continent, Afreximbank has grown its asset base to $37.3 billion and maintains investment-grade ratings from major agencies, including S&P and Moody’s,” explained Brume.
To boost energy investment across Africa, Afreximbank will launch the $5 billion African Energy Bank in January 2025. “Our commitment to Africa’s energy future is clear, with over 32% of our balance sheet dedicated to energy projects,” she stated. The bank has already played a pivotal role in financing key projects such as Angola’s Cabinda refinery, the Dangote Refinery and Petrochemicals complex and an LNG train project in Nigeria.
To facilitate financing, Afreximbank has set up pre-financing support services to help projects meet eligibility requirements. Brume highlighted challenges in the sector, such as capital intensity, regulatory hurdles and infrastructure deficits, noting, “Projects must demonstrate economic viability, access to markets and feedstock, risk management and experienced leadership.”
The bank’s criteria for support includes cross-border impacts and alignment with thematic focus areas like renewable energy. Brume concluded by emphasizing Afreximbank’s unique position, not only as a financier but also as an insurer through its subsidiary, AfrexInsure. “We’re here to make projects bankable and ensure their success from inception to completion,” she added.