KIGALI, Rwanda, Feb. 3, 2022 /PRNewswire/ — 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 the West Africa region.
Due to limited power supply from the grid, the industrial sector in Africa suffers severe energy shortages with attendant high production costs, inefficient operations and reduced global competitiveness, amongst others. 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 minimize CO2 emission by replacing environment-polluting fuels currently in use.
Professor Benedict Oramah, President and Chariman of the Board of Directors of Afreximbank, 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 industrialization purposes and to significantly impact intra-regional trade, especially in the West Africa region.”
Emmanuel Assiak, Acting Chief Executive Officer, FEDA, 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.”
Kwaku Boakye-Adjei, CEO of H Investments and Ecow-Gas, commented: “We are excited to commence this project as we see LNG as not only a fuel for large scale Independent Power Producers in the region but for mid to small scale industries as well to transition from Heavy Fuel Oil, Diesel and other distillates and ultimately, to renewables. LNG powered microgeneration can help to alleviate issues such as intermittency which act as a barrier to wide scale adoption of renewables in West Africa.”
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.
African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade. Afreximbank deploys innovative structures to deliver financing solutions that support the transformation of the structure of Africa’s trade, accelerating industrialization and intra-regional trade, thereby boosting economic expansion in Africa. At the end of 2020, the Bank’s total assets and guarantees stood at US$21.5 billion, and its shareholder funds amounted to US$3.4 billion. Afreximbank disbursed more than US$42 billion between 2016 and 2020. The Bank has ratings assigned by GCR (international scale) (A-), Moody’s (Baa1) and Fitch (BBB-). The Bank is headquartered in Cairo, Egypt.