- APPO and Afreximbank sign MoU to establish an African energy Transition Bank.
The African Export-Import Bank (Afreximbank) and the African Petroleum Producers’ Organisation (APPO) have signed a Memorandum of Understanding (MoU) to create an African Energy Transition Bank. This was contained in a statement signed by Afreximbank’s Media Contact, Mr Amadou Sall, on Friday, May 20, 2022.
Sall said the establishment of the energy bank was in support of an African-led energy transition strategy. According to him, the new institution would accelerate Africa’s economic development while ensuring the progress was compatible with and complementary to the Sustainable Development Goals.
Sall noted that the new bank would also ensure compatibility with the continent’s long-term social and environmental objectives as set out in African Union’s Agenda 2063: The Africa We Want.
“While Africa’s transition towards alternative energy sources presents great opportunities for the continent, this transition must be carefully managed to minimise the short-term adverse impacts of the transition while maximising its longer-term benefits,” he said.
According to Sall, the new bank’s responsibilities would include the management and encouragement of such a productive transition. In addition, he said that APPO member states would be signatories to the Energy Transition Bank’s constitutional documents, which would be structured in the form of a multilateral treaty, and invest equity into the new vehicle.
Sall said that Afreximbank would co-invest and advise on the establishment and implementation process.