African hydrocarbon-producing nations have successfully raised 45% of the $5 billion required to establish the African Energy Bank (AEB).
This pan-African institution is designed to address the financing gap for oil and gas projects, a challenge heightened by the withdrawal of several international donors from fossil fuel investments.
According to credible sources, the funds for the project have been secured by African nations, with Angola, Ghana, and Nigeria emerging as the largest contributors.
“The funds were raised even before the legal establishment of the Bank, with Angola, Nigeria, and Ghana among the primary financial supporters.
I believe we are the first development bank to progress from concept to near-completion in just over two years,” said Omar Farouk Ibrahim, Secretary General of the African Petroleum Producers’ Organization (APPO), during the Angola Oil & Gas Conference in Luanda.
Ibrahim also noted that African oil ministers will convene on November 1 to finalize the launch date of the bank, which will be headquartered in Nigeria.
The creation of the AEB was first announced in May 2022 by the African Export-Import Bank (Afreximbank) and APPO.
The institution is expected to mitigate the impact of traditional financiers withdrawing from oil and gas projects in Africa.
This shift comes after commitments made by around 20 developed countries during COP26 in Glasgow to end foreign financing for fossil fuel projects without carbon capture technologies by the end of 2022.
