By Agatha Asamoah
Representatives of African NGOs working for energy transition are worried about the ongoing support for fossil fuel projects in Africa.
A statement by the NGOs says these projects not only contribute to climate change but also have severe negative impacts on local communities and ecosystems.
Africa is one of the most vulnerable regions to the effects of climate change, with rural communities already facing the devastating consequences of droughts, floods, and extreme weather conditions.
This is exacerbated by the continued investment in fossil fuels for which Afreximbank has continued to ignore and allocated billions of dollars annually to the sector.
Inasmuch as Afreximbank’s efforts at accelerating trade and investments across Africa through financial intermedian and making the continent competitive in world trade, need to put a stop to supporting fossil fuel projects that pose a threat to environmental conservation, human rights, and sustainable energy transition on the Continent.
It is worth stating that the fossil fuel projects Afreximbank financed in Nigeria, Mozambique, and East Africa have had significant socioeconomic impacts, including land grabbing, displacement, loss of livelihoods, increased poverty, and gender-related issues such as teenage pregnancies and gender-based violence. Local conflicts, militarization, and instability; environmental issues like land and water pollution, biodiversity loss, and the disruption of vital ecosystems directly undermine progress towards achieving the Sustainable Development Goals (SDGs).
The NGOs want Afreximbank to take a clue from the African Development Bank (AfDB) for its commitment to green and sustainable development in Africa.
The recent launch of the African Green Financial Initiative demonstrates the Bank’s recognition of the urgent need to transition towards renewable energy and low-carbon development pathways.
The statement urges Chairman of Afreximbank Prof. Benedict Okey Oramah, to sign the Glasgow Statement and join other financial institutions in committing to end support for fossil fuel projects to ensure a cleaner, safer, and more sustainable Africa.
It should also develop a new energy policy that will prioritize partnerships for clean energy development, mobilize domestic and international capital for innovative financing in Africa’s clean energy development and climate financing.