Africa Energy Bank Launch Threatened as Afreximbank Urges APPO to Release $1.25 Billion in Equity Funds
The future of the Africa Energy Bank (AEB) is at risk after the African Export-Import Bank (Afreximbank) warned that delays by the African Petroleum Producers Organisation (APPO) in releasing equity subscription funds could indefinitely stall the landmark project.
In a letter to APPO Secretary-General Dr. Omar Farouk Ibrahim, Afreximbank cautioned that APPO’s insistence on finalizing a launch date, selecting a headquarters, and appointing a president before releasing the funds may derail the creation of the bank.
In June, Dr. Ibrahim rejected Afreximbank’s request to move equity subscription funds into the AEB Equity Investment Account. He argued:
“We cannot unilaterally transfer what is in an escrow account we do not fully control to Afreximbank.”
He added that once a launch date, headquarters, and president are agreed upon, APPO and its member states would transfer all funds to AEB’s account.
Afreximbank strongly disagreed, calling the stance “a mistake” that prevents the formal establishment of AEB.
In a letter signed by Executive Vice President and AEB project lead, Mr. Haytham Elmaayergi, the bank reiterated that depositing equity subscription funds is a non-negotiable requirement to proceed.
Why the Funds Matter
According to Afreximbank, without the funds:
Shareholders cannot be confirmed.
Shares cannot be allocated.
Eligibility of subscribers remains uncertain.
The first General Meeting cannot be convened.
A board and president cannot be appointed.
Ultimately, the bank stressed, these delays make it impossible to launch AEB.
To safeguard the project, Afreximbank urged APPO to comply with the AEB Establishment Agreement and Charter.
The bank cited Article 45.1(a), which requires at least two eligible subscribers to pay for shares worth $1.25 billion before the first General Meeting can take place.
“This payment is essential before electing Directors, appointing a President, and hiring External Auditors,” Afreximbank emphasized.
The bank also warned that repeated delays in transferring funds are now damaging the reputation of all stakeholders involved.
To accelerate the process, Afreximbank highlighted that its board approved amendments in March 2025, allowing it to invest up to $750 million in nominal equity ($300 million paid-in) under a matching arrangement with APPO member states.
The bank concluded that the only viable path forward is the immediate deposit of investor subscriptions into the AEB Equity Investment Account to trigger establishment activities without further delay.
