In a significant development for Africa’s energy sector, Nigeria, Angola and Ghana have fulfilled their capital commitments toward establishing the Africa Energy Bank (AEB), a critical financial institution aimed at bridging the funding gap in the continent’s oil and gas industry.
The milestone represents 44 per cent of the minimum required funding from African Petroleum Producers Organisation (APPO) members to initiate the bank’s operations.
Secretary General of APPO, Omar Farouk Ibrahim, announced this progress during the just-concluded Congo Energy & Investment Forum, according to a statement by the African Energy Chamber (AEC).
The AEB, with initial capitalisation of $5 billion, aims to finance oil and gas projects across the continent, addressing funding challenges posed by traditional Western financial institutions’ reluctance to support fossil fuel initiatives due to environmental concerns.
APPO had requested each of its 18 member states to contribute $83 million, targeting a total initial capitalisation of $5 billion.
Beyond Nigeria, Angola and Ghana, five additional member states – Algeria, Benin, the Republic of Congo, Equatorial Guinea and Ivory Coast – had pledged to make their payments, aligning with the bank’s goal to commence operations in the first half of 2025, the Chamber stated.
