Caribbean Energy Financing Boosted as Afreximbank Increases CARICOM Commitment to $5 Billion
The Caribbean’s energy landscape has received a significant financial uplift as Afreximbank announced an increase in its CARICOM financing capacity to $5 billion. This development, confirmed in March, represents a crucial advancement in addressing the region’s infrastructure and development funding shortfalls.
During the Atlantic Basin Business Forum at Caribbean Energy Week (CEW) 2026, Okechukwu Ihejirika, Acting CEO for the Caribbean Office at Afreximbank, underscored the importance of capital access in realizing the region’s energy aspirations. He stated that substantial financing is essential, and no single institution can fulfill this need alone. Ihejirika emphasized that the establishment of CARICOM Afreximbank aims to create a robust institution capable of financing projects throughout the Caribbean.
Launched in 2023, CARICOM Afreximbank plans to elevate its regional financing limit from $3 billion to $5 billion over the next four years. Ihejirika noted that the initiative has garnered support from CARICOM states and that advisory agencies have been commissioned to develop a framework document. He indicated that they are awaiting feedback from these advisors before proceeding with fund allocation.
Scaling Caribbean Energy: Finance and Infrastructure in Focus
The expansion of Afreximbank’s CARICOM financing commitment marks a pivotal shift towards locally anchored financing structures. These structures are designed to support energy, infrastructure, and industrial projects across the Caribbean. This move aligns with an intensified effort by Caribbean authorities to tackle infrastructure challenges and strengthen regional logistics and connections.
Wandenberg Pitaluga Filho, President of the Amapá Economic Development Agency in Brazil, highlighted the state’s focus on infrastructure, regulatory reform, and workforce development. He articulated that Amapá aims to become a logistics and industrial hub linked to the Guyana Plateau and Caribbean energy initiatives. Filho outlined three key pillars of this strategy: infrastructure, regulation, and workforce development. He pointed out that projects like the expansion of Santana port and new gas infrastructure are vital for supporting future oil and gas developments in the region.
Local Content Takes Center Stage
In addition to financing and infrastructure, local content has emerged as a strategic priority for various Caribbean nations. Speakers at CEW emphasized the necessity for resource development to translate into domestic economic growth. Jude Kearney, Partner at ASAFO&CO., remarked that local content policies are not merely regulatory instruments but essential components of a functional hydrocarbon industry. He cited Nigeria and Equatorial Guinea as examples of how effective local content frameworks can benefit both investors and domestic industry growth.
From an African perspective, Ababacar Mbengue, Director of Promotion and Exploration at Petrosen E&P, discussed Senegal’s approach to local content. He explained that Senegal benchmarks against global markets and has implemented legislation throughout the oil and gas value chain. Mbengue stated that Petrosen is committed to educating and technically supporting investors in seismic work and exploration until project development is feasible.
The consensus from both sides of the Atlantic is clear: local content frameworks must be structured, predictable, and aligned with industry realities to attract investment while simultaneously building domestic capacity.
Cross-Atlantic Cooperation Gains Momentum
The momentum for cross-Atlantic cooperation between Africa and the Caribbean is also increasing. New gas producers and emerging oil provinces are keen to share technical expertise, financing models, and regulatory experiences.
Ibrahima Noba, Director of E&P at Senegal’s Ministry of Energy, delivered a keynote address that highlighted the resurgence of collaboration between Africa and the Caribbean. He noted that both regions face similar challenges and share a common vision, creating a unique opportunity for aligned strategies. Noba expressed optimism about the potential for collaboration among national oil companies (NOCs), the joint development of gas monetization strategies, and enhanced cooperation across the energy value chain.
Source: www.zawya.com
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Published on 2026-04-01 23:26:00 • By the Editorial Desk
