By Jeff Kapembwa
AFRICA’s quest to reduce climate change impact on the environment and its inhabitants carries both political will and profit despite concerted efforts to save the over 3 billion-population on the continent from GreenHouse Gases (GHGs).
The African Export-Import Bank (Afreximbank), the continent’s Multilateral Financial Institution supports the fight against climate change and energy transition in Africa. It also promotes the use of fossil fuels, contrasting the continent’s lobby to reverse damage on the planet.
The AFREXIMBANK’s 32nd Annual General Meeting of Afreximbank just concluded in Abuja where various landmark decisions regarding trade and economic growth for the continent were brainstormed.
The meeting reaffirmed its resolve to stand up for the continent to redress the challenge. The Pan African financial institution had during the AGM reaffirmed its support in fighting climate change on the continent with funding in excess of US$300 million to facilitate an equitable energy transition, and further supporting climate-related projects.
The Bank resolved to facilitate increased collaboration to accelerate the green energy transition in Africa while playing a key role in shaping the continent’s response to climate change.
Key among the lender’s resolutions were to sustain advocacy for Climate Finance and a Just Transition.
It leads the lobby for the operationalization of the much desired Loss and Damage Fund, seeking financial support for the continent, aiding countries affected by climate change and reducing the impact.
Afreximbank calls for a just and equitable energy transition for Africa, recognizing the continent’s unique challenges and opportunities. Supporting Climate-Related Projects and Initiatives.
It strives to integrate climate finance into its operations, focusing on adaptation, mitigation, and addressing climate-related damage. It further collaborates with various institutions and agencies to advance climate finance and development goals.
The Bank is facilitating the smooth operationalization of the continent’s trade flagship-African Continental Free Trade Area (AfCFTA) through leveraging climate finance for Africa’s development.
Climate-resilient economies are being helped to mitigate and insulate themselves from climate change induced shocks on account of them supporting the operationalization and success of the AfCFTA. It further seeks to address Africa’s Climate Finance Gap.
In contrast, AFREXIMBANK, as a lender, is financing the construction of the controversial pipeline which when completed, would carry crude oil from Uganda to the Tanzanian coast for export overseas.
Arguably, during the Conference of Parties (COP) 29 hosted by Azerbaijan about the impact of climate change on Africa, the Afreximbank promised to double-down on their commitment to a just energy transition on the continent.
The African Export-Import Bank – whose main shareholders are African governments – would be part of a syndicate of financial institutions committing a first tranche of external financing to the East Africa Crude Oil Pipeline (EACOP) project, which is majority-controlled by French energy giant TotalEnergies.
Other lenders include South Africa’s Standard Bank, Uganda’s Stanbic Bank and KBC Bank, and Saudi Arabia’s Islamic Corporation for the Development of the Private Sector, a statement published by EACOP’s developer, which called the financing deal “a significant milestone” said.
The loan is in the range of $1 billion, with two further tranches expected, according to the government-owned Ugandan newspaper New Vision. Afreximbank earlier indicated it would provide $200 million to the project.
Samuel Okulony, CEO of the Environment Governance Institute, a Ugandan NGO, affirms Afreximbank’s actions as being in direct contradiction of their “empty words” on climate change.
“Afreximbank is funding the destruction of our own people, while at the same time speaking about energy transition and a commitment to a cleaner future. It is a big disappointment,” he is cited as saying.
Meanwhile, the AFREXIMBANK shareholders appointed Cameroonian-born-Dr. George Elombi as its next President and Chairman of the Board of Directors during the AGM.
He becomes the fourth President to lead the Bank since its establishment in 1993. He succeeds Professor Benedict Oramah, who has served as President and Chairman of the Board of Directors since 2015, and who will be stepping down in September 2025.