MDBs as Strategic Enablers of LNG Finance

Energy investment across Africa remains unevenly distributed. According to the IEA’s World Energy Investment 2025 report, South Africa and North Africa continue to account for a disproportionate share of energy investment, while much of Sub-Saharan Africa faces limited capital access due to perceived political and regulatory risks.

This is where multilateral development banks (MDBs) such as AfDB play a key role. Rather than simply adding capital, they help make projects bankable by reducing risk and improving financing terms. Their participation brings stronger governance, longer loan tenors and institutional credibility, enabling commercial banks, export credit agencies and long-term investors to participate in projects that might otherwise be considered too complex or high-risk.

In the case of Coral North, AfDB’s loan sits alongside funding from other development institutions, export credit agencies and commercial lenders, creating a balanced financing structure that improves affordability and durability. Building on the proven performance of the Coral South FLNG facility, which has shipped more than 100 LNG cargoes, Coral North leverages an established operational model and export track record to reduce execution risk and support investor confidence.

LNG’s Role in Africa’s Energy Transition

Project fundamentals remain central. Coral North is expected to generate significant fiscal revenues – estimated at more than $20 billion over its lifetime – while boosting local employment and industrial participation. This builds on the demonstrated development impact of Coral South, which has created roughly 1,400 jobs, invested approximately $33 million in workforce training, and secured around $800 million in contracts for Mozambican SMEs. These outcomes align LNG development with broader policy priorities, particularly in economies seeking to monetize gas resources while funding infrastructure, grid resilience and economic diversification.

For investors, LNG in Africa is increasingly viewed as long-term energy infrastructure while supporting transition objectives. When backed by MDBs, LNG projects can provide stable, contracted revenues while underpinning gas-to-power expansion, export income and stronger government balance sheets – factors that directly shape country risk and long-term investment performance.

The Invest in African Energy (IAE) Forum, taking place in Paris on April 22–23, 2026, will provide a platform for investors, developers and policymakers to translate these financing models into actionable transactions. Coral North offers a clear reference point for discussions around blended finance, MDB co-investment, export credit participation and policy frameworks that improve project predictability.

At IAE, stakeholders will focus on structuring bankable energy projects, aligning capital with policy objectives and deploying risk-mitigation tools that unlock investment across Africa’s energy value chain. For investors seeking exposure to frontier markets, the forum is designed not just for dialogue, but for deal origination, partnership formation and capital deployment.

In an environment where capital remains concentrated and barriers to entry persist, MDB-backed LNG projects like Coral North demonstrate how structured finance can unlock Africa’s gas potential while delivering commercially viable outcomes – a message that will sit at the core of IAE 2026’s investor agenda.

IAE 2026 is an exclusive forum designed to connect African energy markets with global investors, serving as a key platform for deal-making in the lead-up to African Energy Week. Scheduled for April 22–23, 2026, in Paris, the event will provide delegates with two days of in-depth engagement with industry experts, project developers, investors and policymakers. For more information, visit www.invest-africa-energy.com. To sponsor or register as a delegate, please contact sales@energycapitalpower.com