The African Petroleum Producers Organization , and the African Export-Import Bank , have signed the requisite documents for the establishment of a $5bn Africa Energy Bank.The proposed bank is an institution set up to facilitate, promote, and finance the development of Africa’s hydrocarbon deposits of oil and gas, and condensates and support energy energy transition and net zero 2060 commitments.
The bank is also seeking approximately $83m from each of APPO’s 18 signatories, amounting to almost $1.5bn, while Afrexim Bank’s board on the other hand, has committed to invest $1.250bn.The $5bn AEB is expected to grow its assets to over $120bn in seven years, thus becoming a source of sustainable FDI for Nigeria that supports the vision 2020 ambitions.
AEC emphasized that Africa still faces an energy crisis, with more than 60 million lacking access to electricity, and over 900 million lacking access to clean cooking solutions.It said, “This is happening amidst a rapid decline in fossil fuel funding, while IOCs divest their oil and gas assets, favouring more strategic investments.