The African Export-Import Bank (Afreximbank) and the African Petroleum Producers’ Organisation (APPO) have formally established the Africa Energy Bank (AEB), with an authorised capital of $5 billion, to finance energy projects across the continent.
The bank was formally announced at its inaugural general meeting held in Abuja on Friday. The initiative is aimed at addressing Africa’s huge energy financing needs, estimated at $200 billion, amid declining funding from traditional international financiers for fossil fuel projects.
Afreximbank and APPO said the new institution would bridge the financing gap and support African countries in developing their energy resources while pursuing a fair transition to cleaner energy.
The bank will finance projects across the energy value chain, including oil and gas exploration and production, transportation, processing, refining and distribution.
Its investments are also expected to boost local refining capacity, reduce Africa’s dependence on imported petroleum products and promote trade in energy products among African countries.
The promoters said the institution would strengthen African ownership and participation in the continent’s energy industry, ensuring that its energy future was increasingly shaped by Africans.
