The African Export-Import Bank (Afreximbank) has emerged as the largest financier of oil and gas projects in Africa, with more than $25 billion committed to the sector, according to Wale Tinubu, Group Chief Executive Officer of Oando Plc. Tinubu disclosed this while speaking at the Royal African Society’s conference in London on the future of mining, oil and gas in Africa.
According to Tinubu, the growing role of Afreximbank highlights how African financial institutions are increasingly stepping forward to fund the continent’s energy industry. He noted that while some European lenders have reduced their exposure to African hydrocarbons because of net-zero commitments, the demand for African energy has not disappeared. Instead, African institutions have moved into the space left behind by international lenders.
Tinubu also reflected on Oando’s experience two decades ago when the company sought to list on the Johannesburg Stock Exchange. He said the process forced the company to strengthen its corporate governance, adopt International Financial Reporting Standards and appoint independent directors capable of challenging management decisions. Although the experience was uncomfortable, Tinubu described it as one of the most valuable steps the company took in preparing itself for international investment.
The Oando CEO argued that stronger corporate governance remains critical if African companies are to attract the long-term capital needed to expand. He said many African businesses began as family-owned or informally governed enterprises, making them difficult for global investors to assess when considering long-term investments. For Tinubu, governance is therefore not simply about complying with regulations but about making African companies transparent and credible enough for the global investment community.
Tinubu’s comments come as Africa continues to search for the capital required to develop its vast oil and gas resources while navigating changing global attitudes toward fossil fuels. He maintained that African companies have done the difficult work of becoming more investable and that significant opportunities remain for investors willing to partner with local businesses. With Afreximbank committing billions of dollars to the sector, the bank’s growing influence could play an important role in determining how Africa finances and develops its energy resources in the years ahead.
source: The cable
