African oil-producing nations have raised 45 percent of the $5 billion required to establish the Africa Energy Bank (AEB), aimed at financing oil projects across the continent. This comes amid dwindling international investment due to climate concerns.
Nigeria, Angola, and Ghana are among the early backers of the bank, according to Omar Farouk Ibrahim, secretary-general of the African Petroleum Producers Organisation (APPO). “We are likely the first development bank to move from concept to near realisation in just over two years,” Ibrahim said at the Angola oil & gas conference.
In June, APPO and the African Export-Import Bank (Afreximbank) finalised the Establishment Agreement and Charter for the AEB in Egypt. This followed two years of negotiations, with the bank designed as an independent, pan-African energy development institution.
The AEB is a response to the funding crisis in Africa’s oil and gas sector, driven by the global transition to cleaner energy. “Traditional financiers, on whom Africa has depended for decades, are withdrawing support, particularly in Africa, citing climate change concerns as the primary reason,” Afreximbank stated in June.
Ibrahim added, “We had taken foreign investment for granted in our oil and gas projects, but the energy transition has shown us that those we relied on for many decades are now turning their backs on us.” He stressed that Africa, home to the world’s largest population without access to energy, cannot afford to transition away from fossil fuels too quickly.
- Tags: Afreximbank, Africa Energy Bank, Finance, oil
