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The African Energy Chamber (AEC) has called on the World Bank to lift its ban on financing upstream oil and gas, stressing that access to Africa's hydrocarbon resources is crucial for alleviating energy poverty for millions and promoting sustainable development throughout the continent.
The AEC's Executive Chairman, NJ Ayuk, expressed this in a report, stating that removing the ban is vital for tapping into the continent's hydrocarbon potential, providing reliable and affordable electricity, and generating the necessary revenues to support Africa's long-term energy transition.
He welcomed the World Bank’s decision to revisit its 2017 ban on upstream oil and gas funding but believes that the time for re-evaluation has passed.
Ayuk emphasized the urgent need for action, noting that around 600 million Africans still do not have electricity – a number that is alarming and on the rise.
He pointed out that improvements in electricity access were undone during the pandemic, with around 30 million individuals who had access now unable to afford it.
This worsening energy poverty is hindering Africa’s industrialization and economic and social development. Ayuk argued that Africa needs to develop its energy mix pragmatically, utilizing both fossil fuels and renewable energy, rather than being compelled into an “all or nothing” approach that could leave many without power.
He stated: “Natural gas provides a scalable, cost-effective, and lower-carbon solution that meets the continent's immediate power requirements while facilitating a fair energy transition.
However, the climate panic and fear-mongering disproportionately affecting Africa—a continent contributing merely three percent of global CO₂ emissions—threatens to obstruct this path.”
He added: “The green agenda and the World Bank's ban on upstream financing overlook that natural gas can bring transformative prosperity to Africa via business growth and monetization. We propose a rational, sustainable approach: utilizing our natural gas to address current demands, generate revenue, and finance our shift toward renewables.
Given that universal access to affordable and reliable electricity is one of the UN’s Sustainable Development Goals, the increasing number of Africans living without power is ethically unacceptable and must be addressed,” Ayuk emphasized.
The energy expert highlighted that upstream oil and gas development is already showing its potential to enhance energy access.
“In Mozambique, domestic gas powers the 450 MW Temane gas-to-power project, supplying electricity to communities and industries. Senegal’s gas-to-power initiatives, Nigeria’s Gas Master Plan, and Egypt’s expanded gas-fired generation illustrate how these resources are advancing regional electrification and economic development.
Future upstream projects have transformative potential: Mozambique’s gas reserves could generate over $100 billion in revenue; Namibia’s oil discoveries could yield $3.5 billion annually at peak output, providing funds for infrastructure, education, healthcare, and clean energy investments.” He also noted that “global financial trends are evolving.
Leading banks, especially in the U.S., are relaxing ESG-related restrictions and reinstating oil and gas financing, acknowledging that natural gas remains an essential transitional fuel.
The World Bank should follow suit—not merely as a concession, but as a commitment to its mission of fostering shared prosperity and reducing poverty.”
The AEC called on the World Bank to translate its policy review into substantive action. “Backing upstream oil and gas development is not just economically crucial; it’s a moral obligation if we genuinely aim to eradicate energy poverty and secure a sustainable, fair future for Africa,” Ayuk asserted.
