Africa Takes Control of its Energy Future as APPO, Afreximbank Launch Africa Energy Bank

In a landmark ceremony, the African Export-Import Bank (Afreximbank) and the Africa Petroleum Producers’ Organisation (APPO) signed the Establishment Agreement and Charter of the Africa Energy Bank (AEB), declaring it open for signature by prospective member states.

The signing ceremony, hosted by H.E. Eng. Tarek El Molla, Egyptian Minister of Petroleum and Mineral Resources, marks the culmination of two years of negotiations and preparations between the two parties. The AEB was created to address the impending funding crisis in the African oil and gas industry, triggered by the global energy transition.

The AEB’s primary objective is to fill the imminent void caused by the withdrawal of funding for oil and gas projects in Africa by traditional financiers. With an initial capital of USD 5 billion, the bank will focus on funding oil and gas projects, but will also be open to renewable energy projects, aiming to harness all forms of energy to eradicate Africa’s energy poverty.

The signing of the Establishment Documents by the two founding institutions paves the way for at least two member countries to sign and ratify the documents, enabling the bank to commence operations. Shareholding is open to all investors who share the mission and vision of the bank.

This historic milestone marks a significant step towards Africa’s energy independence and sustainable development and demonstrates the commitment of Afreximbank and APPO to powering Africa’s growth and ensuring energy security for generations to come.