The Fund for Export Development in Africa (FEDA) has invested into Ecow-Gas B.V. (Ecowgas), a Liquefied Natural Gas (LNG) distribution infrastructure platform in West Africa.
FEDA is a development impact-oriented subsidiary of African Export-Import Bank (Afreximbank).
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.
According to a statement, 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 minimise CO2 emission by replacing environment-polluting fuels currently in use,” it added.
President and Chairman of the Board of Directors of Afreximbank, Prof. Benedict Oramah, 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 industrialisation purposes and to significantly impact intra-regional trade, especially in the West Africa region.”