NJ Ayuk, Executive Chairman of the African Energy Chamber (AEC), has called for the use of African financial solutions to tackle the continent’s $15.7 billion infrastructure deficit. Speaking at ARDA Week 2025 in Cape Town, Ayuk urged the continent to harness local capital to boost oil and gas production, processing, and distribution, supporting efforts to eliminate energy poverty by 2030.
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Leveraging African capital
During the event hosted by the African Refiners & Distributors Association (ARDA), Ayuk proposed tapping into the $400 billion available in Africa’s pension funds. He explained that mobilising this capital could fast-track critical infrastructure projects, including pipelines, refineries, and power plants, leading to stronger intra-African energy trade.
With over 600 million Africans lacking access to modern energy and 900 million without clean cooking solutions, Ayuk stressed the need for urgent action. He noted that increasing investment in local infrastructure is essential to meeting the continent’s energy needs.
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Need for regulatory reforms
Ayuk highlighted that outdated and restrictive regulations are the main barriers to achieving the ‘Africa-First Vision’. He explained that internal challenges, rather than external ones, are preventing progress.
“How can we move commodities across the continent yet we struggle to move people?” Ayuk asked, calling for improved visa and immigration policies to enable the free movement of industry stakeholders and citizens.
He also urged policymakers to address high intra-African taxes that discourage trade and investment. According to him, creating a seamless market would promote collaboration across African energy markets and enhance industrial development.
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Promoting collaboration over competition
Ayuk warned against African countries competing against one another for limited capital. Instead, he suggested pooling resources to create an integrated value chain across the continent.
“We shouldn’t compete for capital amongst ourselves,” he said. “Our competition should be with international markets.”
He outlined that by sharing infrastructure and reducing barriers to movement and trade, Africa can create stronger energy markets and accelerate its economic growth.
Role of LPG and Natural Gas
Ayuk underlined the importance of fully utilising Africa’s oil and gas resources. He said that Liquefied Petroleum Gas (LPG) and Liquefied Natural Gas (LNG) have critical roles to play in providing clean cooking solutions and baseload power.
He explained that expanding access to these energy sources will help to lift millions out of energy poverty and drive development across the continent.
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Commending ARDA’s efforts
In his closing remarks, Ayuk commended ARDA for its continued focus on promoting investment in Africa’s downstream oil and gas sector despite the pressures of the global energy transition.
The event, held under the theme Africa First: Delivering Our Energy Future, focused on securing the continent’s energy future through increased investments, collaboration, and infrastructure development across the downstream sector.
