Afreximbank, APPO establish Africa Energy Bank
By Emma Ujah, Abuja Bureau Chief
The African Export-Import Bank (Afreximbank) and the African Petroleum Producers’ Organisation (APPO) have announced the establishment of the Africa Energy Bank (AEB). The announcement came during AEB’s inaugural general meeting held in Abuja on Tuesday.
In a statement, Afreximbank emphasized that the creation of the Africa Energy Bank reflects a commitment among African governments to secure their energy future. It noted the need for substantial investments in energy generation and transmission to stimulate industrial growth and harness emerging technologies, particularly in artificial intelligence.
The statement further revealed that the continent faces an estimated energy investment requirement of $200 billion. Traditional financing sources for Africa’s energy sector are retreating from fossil fuel investments, even as oil and gas continue to play a critical role in the region’s energy landscape. The Africa Energy Bank aims to address this financing gap while facilitating a just energy transition for African nations.
With authorized capital amounting to $5 billion, the AEB is set to support projects across the entire energy value chain, including exploration, production, transportation, processing, refining, and distribution. Afreximbank indicated that investments from the two African organizations are aimed at enhancing productive capacity, decreasing dependence on imported petroleum products, and advancing intra-African trade in energy-related goods.
The AEB’s mandate includes fostering increased African participation in the energy sector to ensure that the future of Africa’s energy landscape is shaped by its own people. It will function as an independent, supranational pan-African financial institution, focusing on attracting investments from governments, national oil companies, financial institutions, and private investors to facilitate energy development across the continent.
During the inaugural general assembly, resolutions were passed to appoint Mr. Helmy Ghazi as the bank’s first president and to form its inaugural Board of Directors, which will consist of representatives from both the public and private sectors as well as leading policy institutions from across Africa.
