Business
By Ejenike Christabel
OMAR Farouk Ibrahim, Secretary General of the African Petroleum Producers’ Organization, APPO, has celebrated a major milestone in the creation of the Africa Energy Bank, AEB, during the signing ceremony in Cairo, Egypt.
This $5 billion institution aims to bridge the funding gap in Africa’s oil and gas industry as the world moves towards renewable energies.
On December 1, 2020, APPO and Afreximbank signed a Memorandum of Understanding, MoU, to collaborate on technical support for the Africa Energy Investment Corporation, AEICORP.
The APPO Ministerial Council later expanded the project’s scope to establish the $5 billion bank with Afreximbank as a partner.
The creation of the AEB is a response to the funding challenges brought on by the global energy transition, which has resulted in the decline in external funding for Africa’s oil and gas projects.
Ibrahim stated that Africa should not hastily abandon its oil and gas resources, considering the significant reserves and the need to provide energy access to millions of people.
The AEB aims to reduce Africa’s reliance on external funding sources, encourage energy security and access for the continent’s growing population.
Ibrahim commended Tarek El Molla, the Egyptian Minister of Petroleum Resources and Professor Benedict Oramah, the President of Afreximbank, for their leadership and vision in supporting the creation of the AEB.
The ceremony was attended by dignitaries, energy experts, and representatives from APPO member countries.
The decision on the location of the Africa Energy Bank’s headquarters is expected in the next few weeks, with operations set to begin in the third quarter of 2024.
Several member countries have already committed to paying their subscriptions and Ibrahim is urging all member countries and their National Oil Companies, NOCs, to support the bank as founding members.
The establishment of the AEB marks a significant step towards Africa’s energy self-sufficiency and economic integration.
Ibrahim also expressed appreciation to the Government and People of Egypt for their role in conceiving, nurturing the project as well as hosting the ceremony and supporting the establishment of the AEB.
The AEB is poised to become Africa’s leading energy financing institution, promoting energy access and economic growth across the continent.
5th JUNE, 2024.
C.E.
Tags: African Petroleum Producers’ Organization APPO Omar Farouk Ibrahim
