Afreximbank’s Fund for Export Devt in Africa Promotes LNG Distribution in W’Africa
The Fund for Export Development in Africa (FEDA), a development impact-oriented subsidiary of African Export-Import Bank (Afreximbank), has announced that it has invested into Ecow-Gas B.V. (Ecowgas), a Liquefied Natural Gas (LNG) distribution infrastructure platform in West Africa.
Due to limited power supply from the grid, the industrial sector in Africa suffers severe energy shortages with attendant high production costs, inneficient operations and reduced global competitiveness, amongst others.
According to a statement, off-grid solutions are required to address these challenges and put Africa firmly on the path to energy sustainability.
“FEDA’s investment in Ecow-Gas will support the creation, in partnership with a leading international oil company, of the infrastructure to provide access to cheaper and cleaner fuels for underserved industrial customers across the region using LNG. This will also promote efforts to minimise CO2 emission by replacing environment-polluting fuels currently in use,” it added.
President and Chairman of the Board of Directors of Afreximbank, Prof. Benedict Oramah, noted that, “FEDA’s investment in Ecow-Gas is a testament to its mission of providing development equity capital to sectors critical to the growth and development of intra-African trade, export development and industrialisation.
“Through this investment, FEDA is seeking to unlock access to affordable and cleaner energy for industrialisation purposes and to significantly impact intra-regional trade, especially in the West Africa region.”
On his part, the Acting Chief Executive Officer, FEDA , Emmanuel Assiak, added: “We are delighted to partner with experienced operators and investors on this mission-critical opportunity to unlock the provision of cheaper and cleaner fuel in West Africa.
“The combined complementary skills and capabilities within the Ecow-Gas platform stakeholders will help enable the company to execute its growth plans. We believe that EcowGas will help to significantly remove the energy supply and cost bottlenecks that negatively impact the competitiveness of the region as a manufacturing destination.”
FEDA pursues a multi-sector investment strategy along the intra-African trade, value-added export development and manufacturing value chains which includes financial services, technology, consumer and retail goods, manufacturing, transport & logistics, agribusiness, as well as ancillary trade enabling infrastructure such as industrial parks, in Afreximbank’s member states.