After 20-month Delay, $5bn Africa Energy Bank Takes off in Abuja.
The bank announced its formal establishment at its inaugural general meeting in Abuja, where an Egyptian, Mr Helmy Ghazi, was appointed its pioneer president and its first Board of Directors was constituted, Afreximbank said yesterday.
The development marked the culmination of a process that began in 2022, when African petroleum-producing countries and Afreximbank initiated discussions on establishing a dedicated financial institution to address the continent’s growing energy financing challenges.
The bank, with an authorised initial capital of $5 billion, may finance projects across the energy value chain, including oil and gas exploration, production, transportation, processing, refining, and distribution.
According to the bank, it was established against the backdrop of an estimated $200 billion in energy investment requirements across Africa and the increasing reluctance of traditional international lenders to finance fossil fuel projects. The concept emerged from concerns among African oil-producing countries that the global energy transition was making it increasingly difficult to secure funding for hydrocarbon developments, despite the continent’s enormous oil and gas resources and widespread energy poverty. Under the arrangement, APPO, which represents 18 African petroleum-producing countries, and Afreximbank are the founding institutions. The APPO member countries are Nigeria, Algeria, Angola, Benin, Cameroon, Chad, the Republic of Congo, the Democratic Republic of Congo, Côte d’Ivoire, Egypt, Equatorial Guinea, Gabon, Ghana, Libya, Namibia, Niger, Senegal, and South Africa.
MSEApp News is publishing an original rewrite of this tip for readers, based on reporting associated with THISDAY.