The oil-producing nations in Africa have raised 45% of the initial $5-billion seed capital for the planned Africa Energy Bank (AEB), which is set to fund oil projects on the continent amid a crunch in financing on the international markets.
The early financial supporters of the Africa Energy Bank include major oil producers Nigeria, Angola, and Ghana, according to Omar Farouk Ibrahim, Secretary General of the African Petroleum Producers Organization (APPO).
“I believe we are the first development bank to progress from conceptualization to near fruition in just over two years,” Ibrahim said on the sidelines of the Angola Oil & Gas conference, as carried by Bloomberg.
Houthi Attacks Damage Oil Tanker and Bulk Carrier in the Red Sea
APPO and African Export-Import Bank (Afreximbank) in 2022 signed the initial agreements about the establishment of the Africa Energy Bank.
The new bank has been structured as an independent and supranational pan-African energy development bank with an initial capital of $5 billion.
In June this year, Afreximbank and APPO signed the Establishment Agreement and the Charter of the Africa Energy Bank at a ceremony in Egypt. The signing ceremony concluded two years of negotiations and preparations by the two parties to establish the AEB.
READ ALSO: Fulanis Behind Banditry, Masari Reveals
The African oil producers decided to create AEB “to address the impending funding crisis in the African oil and gas industry, triggered by the global energy transition.”
“Traditional financiers, on whom Africa has relied for decades, are withdrawing support, particularly in Africa, citing climate change concerns as the primary reason,” Afreximbank said in a statement in June.
APPO’s secretary general Ibrahim commented, “For too long Africa’s oil and gas industry has been dependent on extra-African funding. We came to take foreign financing of our oil and gas projects for granted, until the advent of energy transition made us realize that those on whom we have depended for many decades have decided to abandon us.”
Africa can’t afford to swiftly shift away from fossil fuels when it has the largest share of the population living without access to energy, Ibrahim noted.
NB: Charles Kennedy wrote this article for Oilprice.com
BY: DANIEL ASARE Finance Minister, Dr. Cassiel Ato Forson has touted the country’s recovery from…
The Minister for Lands and Natural Resources, Hon. Emmanuel Armah-Kofi Buah (MP), has granted an…
Mr. Kennedy Agyapong Mr. Kennedy Agyapong, a presidential aspirant of the New Patriotic Party (NPP)…
Mr. Kwesi Pratt, Jnr, a member of the Coordinating Committee of the Pan African Progressive…
The President of the Republic of Ghana, H.E. John Dramani Mahama, brought the curtain down…
Story by George Yawson Vineh The Inspector-General of Police (IGP), Mr. Christian Tetteh Yohuno and…
View Comments
Your blog is a treasure trove of valuable insights and thought-provoking commentary. Your dedication to your craft is evident in every word you write. Keep up the fantastic work!
I admire how this blog promotes kindness and compassion towards ourselves and others We could all use a little more of that in our lives
I am so grateful for the community that this blog has created It's a place where I feel encouraged and supported
I love how this blog gives a voice to important social and political issues It's important to use your platform for good, and you do that flawlessly
The thoroughness in this article is exceptional.
Such a useful bit of content.
I gained useful knowledge from this.