The African Development Bank (www.AfDB.org) and Infrastructure Credit Guarantee Company Limited (InfraCredit) have signed an agreement for a $15 million subordinated loan facility to strengthen InfraCredit’s capital base and attract institutional investors’ resources to help close Nigeria’s infrastructure financing gap.

Lamin Barrow, Director General of the African Development Bank’s Nigeria Country Department, and Chinua Azubike, CEO of InfraCredit, signed the agreement in Lagos on 14 June 2024.

The facility will boost  InfraCredit’s efforts to unlock additional long-term local currency financing through the capital markets for infrastructure projects, primarily by leveraging pools of capital from pension funds and other institutional investors in the West African country.

InfraCredit is a specialized Nigerian credit guarantee company that mobilizes long-term capital from institutional investors to support infrastructure projects, including green and climate-aligned developments.

Barrow expressed the Bank’s satisfaction with this operation. “Our support to institutions such as InfraCredit demonstrates the importance of promoting innovative and scalable solutions to leverage pools of capital from domestic institutional investors, and position local capital market as a viable alternative source of long-term funding to bridge the continent’s huge infrastructure deficit, he stated.”

In his comments, Azubike said, “We are delighted by AfDB’s confidence in our business model, which has successfully facilitated private sector investment in impactful infrastructure projects and InfraCredit’s clean energy roadmap that has accelerated green finance for climate-aligned infrastructure, fostering SME growth, job creation, sustainable energy access, and overall economic development. Despite challenging market conditions, we have consistently demonstrated strong fundamentals, solid portfolio performance, a proven track record, and profitability. The further expansion of our capital base by this facility will bolster our ability to support access to long-term local currency domestic credit for our rapidly growing pipeline of infrastructure projects currently worth over NGN 839billion ($579million), fostering job creation and economic growth.”

Solomon Quaynor, Vice President for Private Sector, Infrastructure and Industrialization of the African Development Bank Group, stated, “The African Development Bank is pleased to be providing additional capital to InfraCredit Nigeria. The success of InfraCredit has inspired the replication of its business model across the continent, a key part of our strategy for scaling up private sector financing in Africa. This is evidenced by our support for the establishment of a similar institution in Kenya covering the East Africa region.”

The partnership advances several strategic objectives under the Bank’s current country strategy for Nigeria, including stimulating local currency bond market financing across key infrastructure sectors and enhancing economic diversification and competitiveness.

Distributed by APO Group on behalf of African Development Bank Group (AfDB).

Media Contact:
Olufemi Terry
African Development Bank Group
media@afdb.org

Technical Contact:
Peter Onyango
Financial Sector Development Department
African Development Bank

About the African Development Bank Group:
The African Development Bank Group (AfDB) is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 34 African countries with an external office in Japan, the AfDB contributes to the economic development and the social progress of its 54 regional member states. For more information: www.AfDB.org  

Promising areas of cooperation and current issues on the bilateral agenda were discussed on June 21, 2024 in Addis Ababa during the meeting between Ambassador Extraordinary and Plenipotentiary of the Republic of Belarus to the Federal Democratic Republic of Ethiopia, Pavel Vziatkin, and Minister of Foreign Affairs of Ethiopia, Taye Atske Selassie.

The main attention during the conversation between the Belarusian diplomat and the Head of the Ethiopian Foreign Ministry was paid to the development of political dialogue, the expansion of trade and economic ties, as well as the implementation of joint events in the humanitarian sphere. 

Distributed by APO Group on behalf of Ministry of Foreign Affairs of the Republic of Belarus.

President Yoweri Kaguta Museveni yesterday evening presided over the signing of a Memorandum of Understanding (MOU) between the Government of Uganda and United Arab Emirates’ Sharjah Chamber of Commerce and Industry at Speke Resort Munyonyo.

President Museveni welcomed the signing of the MOU between Uganda and the Chamber.

He was also happy to note that Uganda and the Gulf countries have strengthened relations which were not there in the past. He added that there is a lot of potential for investment between Uganda and the Gulf countries which should be explored.

The MOU was signed between the Government of Uganda through the Ministry of Works and Transport and Civil Aviation Authority, Ministry of Tourism, Wildlife and Antiquities and Uganda Wildlife Authority, and Sharjah Chamber of Commerce and Industry.

In the Memorandum, Sharjah Chamber of Commerce and Industry agreed to construct Kidepo International Airport near Kidepo National Park and Construct Tourist Hotels within Kidepo National Park to boost the tourism sector and the economy of Uganda.

H.E Abdallah Sultan Al Owais, the Chairman of the Chamber told the President that the construction of the Airport is set to start in August, 2024, and he promised to deliver good work on time.

The signing of the Memorandum of Understanding was also witnessed by Maj. Gen. Kahinda Otafiire, the Minister of Internal Affairs, Gen. Katumba Wamala, the Minister of Works and Transport, Hon. Martin Mugarra Bahinduka, the State Minister for Tourism, Wildlife and Antiquities, H.E Abdalla Hassan Alshamsi, the Ambassador of the United Arab Emirates to Uganda.

Distributed by APO Group on behalf of State House Uganda.

The Republic of the Congo has a goal of increasing hydrocarbon production to 500,000 barrels per day (bpd) and projects such as Wing Wah Oil Company’s Bango Kayo development will serve as catalysts for meeting this objective. The project is a strong example for how integration and scalability can be utilized to not only monetize resources but maximize production beyond the lifecycle of initially-tied in blocks.

The African Energy Chamber (AEC) – the voice of the African energy sector – conducted a tour of Wing Wah’s project near Pointe Noire during a working visit to the country this week. A strong advocate for the development of oil and gas in Africa, the AEC believes that hydrocarbons are the solution for making energy poverty history by 2030.

Project’s such as Wing Wah’s in the Republic of the Congo are not only a testament to the role international partnerships play in developing African oil and gas resources but to the potential for large-scale, integrated developments across the continent. The Ministry of Hydrocarbons – led by Minister Bruno Jean-Richard Itoua – and the country’s NOC Société Nationale des Pétroles du Congo – led by Managing Director Maixent Raoul Ominga – have provided the much-needed support that companies such as Wing Wah need to develop innovative projects, and the AEC commends them for the progress made thus far.

Bango Kayo: An Innovative Oil&Gas Venture

The Bango Kayo conventional oilfield is a producing block operated by Wing Wah, which features 237 wells that have been drilled to date. Currently, the field is producing 45,000 bpd and is nearing its peak production of 50,000 bpd. In addition to oil production, Wing Wah is implementing a phased expansion and development approach to monetize previously-flared gas resources. Over three phases, the project will progressively increase gas treatment and valorization capacity, producing LPG, butane and propane, primarily for the domestic market. Excess LPG will be exported regionally.

The project incorporates the development of three trains. The first has a capacity of one million cubic meters per day (mcm/d), while the second and third trains will have a capacity of two mcm/d each. The second and third trains are anticipated to come online by March 2025 and December 2025, respectively, and will bring the total capacity of the project to five mcm/b. In April 2024, Wing Wah signed an amended production sharing contract with the government for the Bango Kayo block, signaling the start of the expansion of the project.

Integration: A Tool for Maximizing Efficiency and Scalability

Wing Wah’s project in the Republic of the Congo is underpinned by a focus on integration and scalability. The structure of the facilities has been planned in a way that prioritizes efficiency, reduces emissions and promotes scalability. Specifically, the facility enables Wing Wah to tap into stranded gas that would have otherwise been flared, thereby providing opportunities for monetization and the utilization of gas across the oil production cycle. Unlike traditional LNG infrastructure which faces challenges as blocks mature and feedstock declines, the scalable design of Wing Wah’s project creates the opportunity to maximize production – both at existing blocks and new concessions.

Additionally, each unit at the facility has its own power generation solution which are scalable in increments of 2 MW. Currently, 20 MW is installed, with generators utilizing gas from associated blocks. As production increases, so can power generation, thereby ensuring scalability and durability. Meanwhile, the water management system is also integrated into the project in a way that promotes environmentally-friendly operations. Water treatment is conducted on-site and distributed back into the ocean once treated.

As such, the facility provides a quintessence of oil and gas integration. The development approach features fast construction, fast commissioning and quick, efficient operations. Wing Wah are using state-of-the-art equipment and have an organized layout of the overall infrastructure and storage. This is expected to boost efficiency at the project site while ensuring the project plays an instrumental role in processing oil and gas for the long-term.

Prioritizing Local Community Development

In addition to project efficiency, the Bango Kayo development has been constructed in a way that takes into account the needs of local communities. All of the processing facilities have on-site accommodation, with senior management on-call to ensure a constant review of work. Currently, 3,300 people are employed at the project, with 90% of the workforce Congolese. Meanwhile, excess power generated at the project site can be distributed to local communities, providing a clean and reliable source of power. Water management also takes into account regional demand, with surrounding communities benefiting from a clean source. This structure not only brings tangible benefits to local communities but reducing emissions across the project’s operational cycle.

“Wing Wah’s integrated project in the Republic of the Congo is a model that can and must be replicated in other oil and gas producing nations in Africa. The project’s focus on scalability ensures production is not limited to specific blocks, but rather, infrastructure can be easily tied into new concessions as exploration ramps up across the country. Through gas-fired power generation, innovative water management and a long-term approach to production, the project is poised to unlock a wealth of benefits for the country,” states NJ Ayuk, Executive Chairman of the AEC.

Distributed by APO Group on behalf of African Energy Chamber.