Premier Invest Outlines Strategies to Bridge Africa’s Oil and Gas Financing Gap

Last month, Premier Invest signed a landmark agreement with Shell to facilitate access to financing for oil and gas projects across the continent.

Rene Awambeng, Managing Partner at investment banking and advisory firm Premier Invest, highlighted Africa’s current oil and gas financing gap and proposed strategies for unlocking global capital at the Invest in African Energy reception organized by the African Energy Chamber in London on Thursday. Last month, Premier Invest signed a landmark agreement with Shell to facilitate access to financing for oil and gas projects across the continent.

The strategic partnership between Premier Invest and Shell aims to drive growth in Africa's oil and gas sector by identifying and co-financing transactions with the potential to generate significant returns, while creating value for local communities and economies.

“The agreement to co-finance and originate oil and gas agreements in Africa aims to drive growth in the oil and gas sector across the continent. We will work together to identify and evaluate potential opportunities in the oil and gas market and leverage our respective expertise to fund projects that have the potential for significant returns. This is a significant step forward in our commitment to support the growth of the sector,” said Awambeng.

The partnership addresses the persistent lack of foreign direct investment (FDI) in Africa, which currently receives only five percent of global investment. This shortage places African countries at a disadvantage in establishing the necessary infrastructure to produce refined petroleum products and increase power generation and distribution capacities. Awambeng noted that despite Africa being a net crude oil producer, 50% of oil product consumption on the continent is met through imports.

“To address these finance challenges, we have put together an African-owned and managed investment banking firm to offer a range of financial advisory services supporting clients across industry to invest in small, medium, and large-sized projects. The continent lacks funds to finance its oil and gas projects, as well as needs technology to manage its oil and gas industry,” said Awambeng.

The agreement between Premier Invest and Shell represents a significant step towards bridging Africa’s oil and gas financing gap, ensuring that the continent can better leverage its natural resources for economic growth and development.