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Africa Must Embrace Carbon Trading (By NJ Ayuk)

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3 years ago

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ACMI

The climate projects that benefit from this system range from reforestation and forest conservation to renewable energy and carbon-storing agricultural practices

JOHANNESBURG, South Africa, March 9, 2023/APO Group/ — 

By NJ Ayuk, Executive Chairman, African Energy Chamber (http://www.EnergyChamber.org)

One of the most promising outcomes of the COP27 climate conference last November was the launch of the African Carbon Markets Initiative (ACMI). This African-led initiative is designed to significantly drive up the continent’s participation in voluntary carbon markets.

Carbon markets are platforms for carbon trading: the buying and selling of credits that allow entities to release a specified amount of carbon dioxide or other greenhouse gases. Essentially, carbon trading allows countries (or companies) to fund projects that reduce emissions instead of reducing their own emissions.

The climate projects that benefit from this system range from reforestation and forest conservation to renewable energy and carbon-storing agricultural practices.

We at the African Energy Chamber, like other advocates, are excited about carbon trading’s potential to bolster investment in green technologies and projects, especially in developing countries. We’re optimistic about the prospect of seeing the carbon trading system lead to more investments in African climate projects, which could help African states generate the necessary revenue to build a renewable energy sector.

However, we are concerned that Africa is not being included in the world’s carbon trade to the extent it should be. According to Good Governance Africa, only about 2% of the global climate projects funded through carbon trading were in our continent, and the majority of those took place in South Africa and the North Africa region.

As I stated in my recently released book, ‘A Just Transition: Making Energy Poverty History with an Energy Mix’, Some argue that we simply don’t have the political will to pursue this opportunity. Others say that we lack the necessary technology, or that we need a regulatory framework to move forward. I believe there is some truth in all of those statements, but we must find ways to overcome these obstacles.

Certainly, the creation of ACMI is very promising, but there is still a great deal of work to be done to ensure that Africa fully capitalizes on what carbon trade has to offer. We must begin now.

Limiting  Africa’s participation in the carbon market is a big mistake. This would be a missed opportunity for our continent that we simply cannot afford.

How Carbon Trading Helps

In 1997, the United Nations Framework Convention on Climate Change established the Kyoto Protocol to reduce worldwide carbon emissions by obligating countries to limit greenhouse gases according to individual targets. The protocol asks participating countries to first attempt to meet their hydrocarbon targets through national measures, but if they can’t, the protocol allows them to meet their targets through the market. If a country emits more than its target amount, it may buy “surplus credits” from those that have achieved their protocol targets.

The basic concept is that it doesn’t matter where emissions are reduced, just that they are removed from the atmosphere.

From an ecological standpoint, the carbon trade supports emission reduction goals, and it does so by promoting a win-win situation: A hydrocarbon emitter may exceed its target, as long as it purchases permits or credits generated from emissions-reduction projects. A typical transaction sees an industrialized nation investing its credits in environmental projects in developing nations, which also fast-tracks newer, cleaner infrastructure that these regions might otherwise never have the access or the means to introduce.

The ramifications of this are profound.

Consider what the International Emissions Trading Association said in 2019 about carbon trading’s potential to cover the costs of African countries’ nationally determined contributions (NDCs), that is, what they’ve pledged to do to address climate change under the Paris Agreement.

“Cross-border coordination in the form of carbon trading could cut the cost of meeting NDCs in half by 2030, making it possible to cut emissions 50 percent more, at no additional cost.”

And from an economic standpoint, carbon trading is a brilliant mechanism because it works with the reality of the world: Some nations or regions of the world (typically industrialized areas) are unable or unwilling to cut their emissions back far enough, while others (predominantly in developing economies) create far fewer emissions. Trading carbon credits as a commodity supports the needs and goals of both industrialized and developing nations.

Africa Must Capitalize on Carbon Trading

We are concerned that Africa is not being included in the world’s carbon trade to the extent it should be

In addition to the environmental possibilities, carbon trading is also a cash cow.

The market for trading carbon has grown substantially since its inception: In 2021, the value of traded carbon credits hit $851 billion. There are now about 70 carbon pricing instruments (CPIs) operating worldwide, including taxes and emissions trading systems, which involve some 23% of global emissions.

It’s fascinating that carbon emission reduction is now tracked and traded like any other commodity. And clearly, this is a huge market.

Unfortunately, to date, much of Africa has been missing the boat when it comes to fully participating in global carbon markets on fair terms.

In a recent report, ACMI’s founders identified some of the obstacles that must be overcome for Africa to realize its carbon market potential. The list is significant. A few of the obstacles included are:

  • A limited number of project developers, about 100, operate in Africa.
  • There are significant up-front capital requirements to launch carbon credit projects.
  • Regulatory challenges exist that vary from country to country.
  • Fragmented assets make deploying large-scale climate projects more difficult.
  • Fostering community buy-in can be challenging.
  • The ease of doing business varies by country and community.
  • The methodology for designing carbon credit projects is not always a good fit for African countries, where infrastructure and technology can be limited.
  • The required validation and verification of carbon credit projects can be expensive and involve long lead times.
  • Africa lacks capacity for project verification.

The pathway to overcoming these obstacles will be complex and multifaceted. One important step, I believe, will be cross-border collaboration in carbon markets.

We can see the positive results of such collaboration in other regions of the world. The European Union Emissions Trading System (ETS), for example, has expanded to include almost half of all European emissions since its 2005 inception. China launched its own ETS in 2021. The EU is now in the planning stages of linking its system with the independent Swiss market, while China is working to link its ETS with a regional market of Southeast Asian countries to increase cooperation for greater efficacy.

Now is the time to call upon industrialized leaders to boost their collaboration with their African colleagues. Large emitters must be encouraged to channel investment — through the carbon trading mechanism — into African green initiatives.

Let’s follow the example that Sweden and Rwanda are setting. They are negotiating their own government-to-government climate financing system, which, in Rwanda, has already restored 100,000 hectares of degraded ecosystems, created 176,000 jobs, and brought renewable off-grid energy to 88,000 households. This partnership has the potential to finance Rwanda’s ambitious 38% reduction in greenhouse emissions by 2030.

We need to see even more African participation in collaborations like this.

African Leadership in the Carbon Trade Is a MUST!

Africa would be remiss not to embrace carbon trading and have discussions with wealthy nations about channeling more investments into African climate projects. But more importantly, Africans need to take leadership on this.

Waiting for an “invitation” and not being pragmatic enough to embrace carbon trading in its entirety will make it difficult for Africa to catch up later.

This means that we Africans need to drive those discussions. We also need to ensure — and be ensured — that investments in African climate projects are just. We’ve already seen examples of projects that shortchanged Africans. Several years ago, for example, Kenyan farmers were promised payments for storing carbon in their soils and farm trees. But the market price for carbon plummeted, and the farmers received little.

The last thing we need is to be boxed into a constrictive market that victimizes Africa by allowing investors to take advantage of us. We need to establish what fair value is for investments in African projects and ensure that wealthy nations really pay us what’s fair.

This brings us back to the ACMI that was launched during COP27. It is committing to developing a transparent, practical, sustainable approach to carbon markets for Africa. By doing that, it says, it will unlock billions of dollars in revenue for African climate projects and create more than 100 million jobs by 2050.

I believe African governments, businesses, institutions, and organizations should support this initiative — and do everything possible to expand Africa’s role in carbon trading.

Doing this offers the prospect of adding massively to African economies, not only by creating jobs, but also by expanding energy access through the renewable energy projects that receive funding. And, at the same time, we will be supporting environmental causes by protecting biodiversity and driving climate action.

These benefits are too important to miss.

Distributed by APO Group on behalf of African Energy Chamber.

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Congo Is Turning Reserves into Bankable Projects – and the Investment Window Is Opening

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June 24, 2026

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Eni-led LNG expansion and ongoing deepwater investment are pushing the Republic of Congo’s energy sector toward more bankable projects ahead of the Congo Energy & Investment Forum 2027

BRAZZAVILLE, Congo (Republic of the), June 23, 2026/APO Group/ –With LNG exports set to triple to 3 mtpa, upstream oil production targeting 500,000 bpd and a renewed push on local content, the Republic of Congo is positioning itself as one of Central Africa’s most investable hydrocarbon markets. Under the leadership of the newly-appointed Minister of Hydrocarbons, Stev Simplice Onanga, the country is prioritizing industry growth by balancing local content with reserve replacement and project advancement.

 

What sets Congo apart is not the scale of its reserves, but the pace at which those reserves are being turned into commercially viable projects. From Eni’s LNG expansion and TotalEnergies’ deepwater developments to brownfield optimization by Trident Energy and output growth at Ammat Global Resources, capital is flowing into projects with clearer monetization pathways and nearer-term returns.

Ahead of the Congo Energy & Investment Forum (CEIF) 2027 – the country’s leading platform for energy investment and partnerships – the story is shifting away from frontier potential toward bankable projects already under development.

Policy Reform Is De-Risking Investment

Congo’s investment case is being reshaped by the alignment of resource base, regulatory reform and project delivery. Established oil production, expanding LNG capacity and fiscal adjustments are gradually reducing above-ground risk.

Recent reforms led by the Ministry of Hydrocarbons and Société Nationale des Pétroles du Congo have added structure to the sector. The Gas Code, introduced in October 2025, formalizes fiscal terms for gas commercialization, while the Gas Master Plan prioritizes flaring reduction and gas-to-power deployment, targeting 1,500 MW by 2030.

A new upstream licensing round is also under consideration, aimed at attracting fresh capital into both mature and frontier acreage. Together, these measures are improving visibility across upstream, midstream and downstream segments, with recent project activity reinforcing the shift.

The Projects Driving the Next Cycle

Deepwater oil remains central to Congo’s production outlook, with operators progressing both new developments and brownfield optimization. TotalEnergies is advancing work at the Moho licence following the April 2026 Moho G discovery, backed by a $500–$600 million infill drilling program targeting about 40,000 bpd in incremental output.

Local independent Ammat Global Resources is targeting 70% production growth from its Loango and Zatchi fields, where reactivated wells and upgraded platforms have already lifted output by 75%. Perenco continues steady gains, adding roughly 6,000 bpd through its 2025–2026 drilling program.

Trident Energy, after acquiring an 85% working interest in the Nkossa and Nsoko II assets in 2025, is focused on extending field life through subsea optimization and redevelopment work.

While oil continues to anchor revenues, gas is rapidly emerging as Congo’s fastest-growing segment. Eni’s Congo LNG project delivered its first cargo from Phase 2 in February 2026, following the startup of the Nguya FLNG unit in December 2025. Together with Tango FLNG, capacity has risen from 0.6 mtpa to 3 mtpa. Trident Energy has also proposed an FLNG project aimed at adding further capacity across the country’s gas market. The project is expected to operate as shared infrastructure, allowing multiple operators to process gas from their respective fields. This creates an outlet for associated gas that might otherwise be stranded, supporting the country’s broader diversification goals.

Local Content Is Reshaping Investment Terms

Beyond upstream policy, Minister Onanga has positioned local content as a central pillar of Congo’s investment framework, and a key determinant of how capital is structured and deployed.

Decrees 2019-342, 343, 344 and 345 set requirements around subcontracting, workforce localization and training commitments, with the effect being a gradual shift in how projects are structured and how partnerships are formed. Operators are increasingly assessed not only on technical delivery but on in-country value creation, including partnerships with local firms and skills development. Logistics, maintenance and other service areas are increasingly channeled through domestic providers.

At CEIF 2027 – taking place June 1–3 in Brazzaville – attention will shift to what is moving forward and to the investors positioned to take part in that pipeline. Congo’s energy sector is no longer defined by potential alone: projects are moving, capital is being committed and policy is starting to catch up with activity on the ground.

As the Republic of Congo moves from reserves to revenue, the signal to investors is clear: this is already unfolding, not a future opportunity.

Distributed by APO Group on behalf of Energy Capital & Power.

 

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Afreximbank secures double honours at the 2026 International Association of Business Communicators (IABC) Gold Quill Awards for excellence in strategic communications

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June 24, 2026

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The Award of Excellence for IATF2025 recognises the successful communications and stakeholder engagement programme delivered around the fourth edition of the Intra-African Trade Fair, Africa’s premier trade and investment event

CAIRO, Egypt, June 23, 2026/APO Group/ –African Export-Import Bank (Afreximbank) (www.Afreximbank.com) has been recognised with two prestigious honours at the 2026 International Association of Business Communicators (IABC) Gold Quill Awards, one of the world’s most prestigious awards programmes for strategic communications.

 

The Bank received an Award of Excellence in Special and Experiential Events category for the Intra-African Trade Fair 2025 (IATF2025) held in Algiers, Algeria and an Award of Merit in the Social Media category for its Afreximbank Social Media Campaigns, reaffirming Afreximbank’s commitment to delivering impactful communications that advance its mandate of promoting trade, investment and industrialisation across Africa and the Caribbean.

We are delighted to receive these two awards, which attest to the expertise, creativity and efficiency of Afreximbank’s communication

The Award of Excellence for IATF2025 recognises the successful communications and stakeholder engagement programme delivered around the fourth edition of the Intra-African Trade Fair, Africa’s premier trade and investment event. IATF2025 brought together governments, businesses, investors, buyers, sellers and entrepreneurs from across Africa and beyond, creating a platform for trade and investment opportunities while advancing the objectives of the African Continental Free Trade Area (AfCFTA). The communications campaign played a pivotal role in driving global awareness, stakeholder participation, media visibility and engagement before, during and after the event, while showcasing the scale, ambition and dynamism of African enterprise and reinforcing a positive narrative about Africa’s capacity to trade, industrialise and compete on the global stage. Over 120,000 delegates attended IATF2025 in person and virtually, with deals worth over US$50 billion recorded.

The Award of Merit for Afreximbank Social Media Campaigns recognises the Bank’s strategic use of digital platforms to engage stakeholders, amplify its developmental impact and elevate conversations around trade, industrialisation, economic integration and investment opportunities across Africa and the Caribbean. Through a combination of compelling storytelling, thought leadership content, executive advocacy, multimedia production and real-time event coverage, Afreximbank’s social media platforms have continued to expand their reach and influence among policymakers, businesses, investors, development partners and the wider public. Among these platforms is the Afreximbank TV, a digital TV channel that is wholly owned and managed by Afreximbank, whose fifth edition was celebrated with dedicated coverage of IATF2025, providing live coverage of the activities to both pan African and global audiences.

Anne Ezeh, Director & Global Head, Communications and Events at Afreximbank commented: “We are delighted to receive these two awards, which attest to the expertise, creativity and efficiency of Afreximbank’s communications. As a pan African multilateral financial institution, we see storytelling as a powerful tool for advancing our mission — ensuring our initiatives, events, programmes and key announcements not only inform, but also inspire confidence, deepen engagement and amplify Africa’s transformation. These awards reinforce our resolve to continue delivering world-class communications that elevate African voices and projects a bold and authoritative narrative of the continent.”

Ms. Ezeh added that through innovative storytelling, digital engagement and integrated campaigns, the Bank will continue to amplify the impact of its programmes and partnerships  to project a more authentic narrative of Africa, one defined by opportunity, innovation, resilience and growing influence in the global economy.

For more than five decades, the IABC Gold Quill Awards have recognised excellence in strategic communications globally, celebrating programmes and campaigns that demonstrate measurable impact, innovation, creativity and outstanding execution. Widely regarded as the pinnacle of achievement in the communications profession, the awards are judged through a rigorous and independent evaluation process conducted by experienced communication leaders from around the world.

Distributed by APO Group on behalf of Afreximbank.

 

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Islamic Development Bank (IsDB) Institute Unveils 2025 Annual Report During Group Annual Meetings in Baku

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June 24, 2026

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In 2025, IsDBI significantly expanded its footprint in Islamic finance transformation, approving 25 new technical assistance projects valued at US$4.14 million and completing 19 projects worth US$3 million

BAKU, Azerbaijan, June 23, 2026/APO Group/ —

The Islamic Development Bank Institute (IsDBI) (https://IsDBInstitute.org) has released its 2025 Annual Report during the 2026 IsDB Group Annual Meetings held in Baku, Azerbaijan, showcasing a year of expanded impact in Islamic finance transformation, innovative solutions, and capacity development.

 

The report highlights how IsDBI strengthened its role as a global knowledge leader by advancing innovative solutions and scaling support to Member Countries through knowledge-based interventions, Islamic finance grants, and strategic partnerships.

In 2025, IsDBI significantly expanded its footprint in Islamic finance transformation, approving 25 new technical assistance projects valued at US$4.14 million and completing 19 projects worth US$3 million, supporting countries in strengthening regulatory frameworks and promoting inclusive financial systems.

Since 2013, the Institute’s interventions in this regard have reached over US$27.57 million across 181 projects benefiting more than 34 countries, underlining its sustained contribution to development outcomes across the Islamic world.

I am pleased to note that the Institute has continued to strengthen its unique role in the global development ecosystem

The Annual Report highlights major progress in IsDBI’s three flagship transformative projects, namely Awqāf Free Zones, Digital Postal Islamic Financial Services, and Smart Countertrade System, which have all advanced to pilot-ready stages. These initiatives aim to address global challenges such as financial inclusion, food and energy security, and trade resilience.

Furthermore, the Institute accelerated its focus on digital innovation in Islamic finance, enhancing its Islamic Finance Artificial Intelligence Assistant (IFAA) and hosting its first AI Hackathon on Islamic Finance, engaging more than 40 teams in developing cutting-edge solutions aligned with industry standards.

Human capital development in Islamic finance also remained a cornerstone of IsDBI’s work in 2025, with the delivery of over 20 training programs reaching around 500 professionals across Member Countries. A key achievement in this area was the Entrepreneurial Mindset Development Program, a flagship initiative equipping emerging leaders from 20 countries with innovation-driven and values-based entrepreneurship skills. The program was designed and implemented in collaboration with Prince Mohammed Bin Salman College of Business and Entrepreneurship, Saudi Arabia.

The Institute also strengthened its thought leadership through flagship publications, global partnerships, and digital engagement, reinforcing its position as a leading voice in Islamic economics and finance.

Commenting on the issuance of the Annual Report, Dr. Sami Al-Suwailem, Acting Director General of IsDBI, said: “I am pleased to note that the Institute has continued to strengthen its unique role in the global development ecosystem by bridging knowledge creation, building human capital, and designing innovative solutions to address economic challenges.”

The 2025 Annual Report is accessible on IsDBI website here (https://isdbinstitute.org/product/isdbi-annual-report-2025/).

Distributed by APO Group on behalf of Islamic Development Bank Institute (IsDBI).

 

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