Africa Energy Bank To Commence Operation Later This Year

By Emmanuel Nduka

The proposed Africa Energy Bank which is a collaboration between the African Export-Import Bank (Afreximbank) and the African Petroleum Producers Organization (APPO), will commence operations later this year, with an initial $5 billion capital, according to Reuters citing a senior official on Wednesday.

The bank which is poised to focus on oil and gas investments continent-wide, aims to bridge funding shortfalls in Africa amidst mounting pressure on major banks to divest from climate-unfriendly energy projects.

Managing Director of Africa Energy Investment Corporation (AEICORP), Zakaria Dosso, the investment arm of APPO, stated: “Africa should establish its own financing capability to develop this strategic sector.”

Dosso revealed that Ghana recently deposited over $20 million to AEICORP, joining Nigeria and Angola, Africa’s top two crude oil producers, who each contributed $10 million last year.

“Africa Energy Bank is close to realization and is expected to launch in the latter half of 2024,” Dosso stressed.

Each African member country is envisioned to contribute a minimum of $83 million, totaling around $1.5 billion, with Afreximbank and APPO matching this sum as founding members, while the remaining $2 billion may come from other investors, including Middle Eastern sovereign wealth funds.

Regarding the selection of the bank’s headquarters, Dosso disclosed that six countries – Algeria, Benin, Cote d’Ivoire, Ghana, Nigeria, and South Africa – are vying for hosting rights.

Earlier, Egypt withdrew its application, leaving Angola, Libya, Senegal, Venezuela, and Afreximbank to assess applicants and present their findings for ministerial consideration.

Heritage Times HT recalls that Engr. Simbi Wabote, former Executive Secretary of the Nigeria Content Development and Monitoring Board (NCDMB), made the proclamation for the establishment of the Africa Energy Bank at the 3rd African Local Content Roundtable held in Abuja, Nigeria in October last year.