Afreximbank’s Fund for Export Development in Africa, a development-oriented subsidiary, will invest in Ecow-gas, a West African LNG distribution infrastructure platform.
Due to a restricted supply from the grid, the African industrial sector faces acute energy shortages. This comes with a slew of issues, including high production costs, inefficient operations, and a drop in global competitiveness, to name a few. Off-grid alternatives are one solution to these problems.
FEDA’s investment in Ecow-Gas will fund the development of infrastructure in West Africa, in collaboration with an international oil corporation, to provide access to cheaper and cleaner fuels to currently underserved industrial clients who utilize LNG.
By substituting polluting fuels with something marginally cleaner, it can also reduce CO2 emissions.
Emmanual Assiak, Fund for Export Development in Africa (FEDA) acting CEO, said: “We believe that Ecow-Gas will help to significantly remove the energy supply and cost bottlenecks that negatively impact the competitiveness of the region as a manufacturing destination.”
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