The African Export-Import Bank (Afreximbank) and the Africa Petroleum Producers’ Organisation (APPO) have officially signed the Establishment Agreement and Charter of the Africa Energy Bank (AEB). The signing ceremony, hosted by Egypt’s Ministry of Petroleum and Mineral Resources, marks the culmination of two years of negotiations and preparation.
Key Figures and Signatories
– Prof. Benedict Oramah: President and Chairman of the Board of Directors, Afreximbank
– Dr. Omar Farouk Ibrahim: Secretary General, APPO
– Eng. Tarek El Molla: Egyptian Minister of Petroleum and Mineral Resources and APPO Ministerial Council member
Purpose and Goals of the AEB
The AEB was created to address the impending funding crisis in the African oil and gas industry, caused by traditional financiers withdrawing support due to global energy transition concerns. The bank aims to:
– Provide funding to Africa’s oil and gas sector.
– Facilitate energy independence and sustainable development.
– Harness collective resources and expertise for the continent’s benefit.
– Balance climate change mitigation with the need to avert social upheavals due to economic and financial challenges.
Statements from Key Stakeholders
– Eng. Tarek El Molla emphasized the significance of the AEB in achieving energy independence and sustainable development, highlighting the collaboration between Afreximbank and APPO.
– Prof. Benedict Oramah Stressed the historic nature of the day and the importance of finding a balance between mitigating climate change and addressing Africa’s urgent economic needs. He praised the joint efforts and collaboration with APPO.
– Dr. Omar Farouk Ibrahim Highlighted the need for Africa to secure its energy future independently, criticizing the abandonment by traditional foreign financiers and emphasizing the importance of oil and gas for the continent’s energy needs.
AEB’s Objectives and Structure
– Primary Objective: To fill the funding gap left by traditional financiers in Africa’s oil and gas industry.
– Additional Focus: While primarily funding oil and gas projects, AEB will also support renewable energy projects to eradicate energy poverty in Africa.
– Structure: Independent, supranational pan-African energy development bank with an initial capital of US$5 billion.
– Shareholding: Open to all investors who align with the mission and vision of the AEB.
Next Steps
Following the signing of the Establishment Documents, at least two member countries need to sign and ratify the documents for the AEB to commence operations. The operational launch is set for July, with Afreximbank taking a lead role in advising on management and implementation processes.
The establishment of the Africa Energy Bank is a significant milestone for the continent, promising to secure funding for vital oil, gas, and renewable energy projects, and drive towards a more energy-secure and prosperous future for Africa.
