Afreximbank, APPO unveil Africa Energy Bank to bridge $200bn funding gap
The African Export-Import Bank (Afreximbank) and the African Petroleum Producers’ Organization (APPO) have launched the Africa Energy Bank (AEB) with an authorised capital of $5 billion to address financing challenges in the continent’s energy sector.
The institutions announced the launch on Saturday during the bank’s inaugural general meeting in Abuja, where Helmy Ghazi was appointed its first president.
In a joint statement, Afreximbank and APPO said the bank was being established at a time when Africa’s energy investment needs were estimated at $200 billion, while traditional sources of financing for fossil fuel projects were withdrawing funding despite the continued importance of oil and gas to the continent’s energy systems.
“The Africa Energy Bank aims to bridge this financing gap while supporting a just energy transition for African countries,” the organisations said.
They explained that the bank would operate as an independent, supranational pan-African financial institution, attracting investments from governments, national oil companies, financial institutions and private investors.
With its $5 billion authorised capital, the bank is expected to finance projects across the energy value chain, including exploration, production, transportation, processing, refining and distribution.
According to the statement, its mandate includes strengthening African participation in the energy sector, reducing dependence on imported petroleum products and expanding intra-African energy trade.
The inaugural general meeting also approved the establishment of the bank’s first board of directors, comprising representatives from the public and private sectors, as well as leading policy institutions across the continent.
