Afreximbank, APPO establish Africa Energy Bank

African Export-Import Bank (Afreximbank) and the African Petroleum Producers’ Organisation (APPO) have established the Africa Energy Bank (AEB).

The announcement was made during the AEB’s inaugural general meeting held in Abuja yesterday.

According to Afreeximbank in a statement, “The creation of the Africa Energy Bank reaffirms African governments’ determination to secure their own energy future.

“This move is in recognition that significant investments in energy generation and transmission was required to accelerate industrial growth and to leverage the tremendous opportunities from the emerging technologies, particularly Artificial intelligence (AI).”

It added, “AEB is being established at a time when the continent’s energy investment needs are estimated at US$200 billion.

“Traditional providers of short- and long-term financing to Africa’s energy sector are withdrawing funding from fossil fuels, even as oil and gas remain vital 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.”

With an authorised capital of US$5 billion, the AEB will support projects across the energy value chain, including exploration and production, transportation, processing, refining, and distribution.

Afreximbank said the investments by the two African organisations were intended to strengthen productive capacity, reduce reliance on imported petroleum products, and promote intra-African trade in energy goods.

AEB’s mandate includes promoting robust African participation in the continent’s energy sector to ensure that Africa’s energy future is shaped by Africans.

The AEB will operate as an independent, supranational pan-African financial institution and seek to attract investments from governments, national oil companies, financial institutions, and private investors to support energy development across the continent.

Resolutions passed at the first general assembly included the appointment of the bank’s inaugural President, Mr Helmy Ghazi, and the formation of its first Board of Directors, comprising members from the public and private sectors as well as leading policy institutions from across the continent.