- Â APPO and AfreximBank have signed the requisite documents for the establishment of a $5bn Africa Energy Bank
- The proposed bank is an institution set up to facilitate, promote, and finance the development of Africa’s hydrocarbon deposits of oil and gas, and condensates and support energy transition and net zero 2060 commitments
- The Africa Energy Bank is expected to directly address funding challenges by providing an African solution to financing energy project
African Petroleum Producers Organization (APPO), and the African Export-Import Bank (Afreximbank), have signed the requisite documents for the establishment of a $5bn Africa Energy Bank.
The African Energy Chamber (AEC), in a statement on Monday, confirmed that the signing ceremony was held in Cairo, Egypt on Monday, marking the official creation of the institution.
Facilitating and promoting clean energy by strengthening energy access and growth in Africa
The proposed bank is an institution set up to facilitate, promote, and finance the development of Africa’s hydrocarbon deposits of oil and gas, and condensates and support energy transition and net zero 2060 commitments.
The AEC in the statement, expressed the belief that the Africa Energy Bank, will play a role in strengthening energy access and growth in Africa by providing the financing needed to get large-scale projects off the ground.
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Adding that despite the role oil and gas has, and will continue to pay in Africa, global efforts to transition to alternative sources of fuel, have created a significant investment gap worldwide.
The Africa Energy Bank is expected to directly address funding challenges by providing an African solution to financing energy projects.
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The bank is also seeking approximately $83m from each of APPO’s 18 signatories, amounting to almost $1.5bn, while Afrexim Bank’s board on the other hand, has committed to invest $1.250bn.
The $5bn AEB is expected to grow its assets to over $120bn in seven years, thus becoming a source of sustainable FDI for Nigeria that supports the vision 2020 ambitions.
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The Africa Energy Bank is expected to directly address funding challenges by providing an African solution to financing energy projects.
The proposed bank has started receiving substantial interest from African governments and development financial institutions, with the APPO’s Secretary General, Omar Ibrahim, announcing that the bank had started receiving funds from APPO’s member states.
The Executive Chairman of the AEC, NJ Ayuk also said with the establishment of the bank, African countries will not only be able to benefit from a new source of financing, but will be able to reduce their reliance on foreign capital.
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