- The African Petroleum Producers Organisation (APPO) is urging oil-producing African countries to pay their $83 million fees to help launch the African Energy Bank (AEB) in September 2024.
- The African Energy Bank aims to raise $5 billion to fund energy projects in Africa, including oil, gas, and renewable energy, and will work with over 700 African banks.
The African Energy Bank (AEB), set to debut in Nigeria in September 2024, is grappling with funding challenges. Delays in contributions from member countries have prompted the African Petroleum Producers Organisation (APPO) to appeal to oil-producing African nations to fulfill their $83 million subscription fees.
The call from Omar Farouk Ibrahim, APPO’s secretary-general, underscores the urgency of securing the necessary funds to advance the bank’s establishment.
The AEB, established in collaboration with the African Export-Import Bank, is intended to have an initial capitalization of $5 billion. Its mission is to provide private sector financing for energy development projects across Africa, including those related to oil, gas, and renewable energy.
The bank aims to partner with over 700 African banks to foster a profitable and sustainable energy sector on the continent. APPO, which was founded in January 1987 in Nigeria, serves as a platform for coordination and knowledge sharing among African oil-producing nations.
The organization’s current focus is on ensuring that member countries meet their financial commitments to support the AEB’s launch. In light of the recent trend of development finance institutions and multilateral development banks reducing their funding for fossil fuel projects due to climate change concerns, the AEB represents a significant shift.
It aims to capitalize on Africa’s rich natural resources, including oil, gas, and emerging green hydrogen projects, by redirecting pension funds and other domestic capital into regional energy initiatives. The AEB is seen as a crucial step in addressing Africa’s energy financing gap, particularly as traditional funding sources become more restrictive.
The successful launch of the bank will depend on timely contributions from member states to reach its funding goals and fulfill its mission of enhancing Africa’s energy infrastructure.
Does APPO wish to extend the investment or willing investors to buy in with equity shares in the AEB?
If yes we would like to introduce willing Foreign Investments.