18 May Afreximbank, African Oil Producers to Float Energy Bank
African Export-Import Bank (Afreximbank) has signed a deal with the African Petroleum Producers Organisation (APPO) for the creation of an energy bank to cater to the energy needs of the continent as a result of declining global investment in the oil and gas sector.
During the signing ceremony at the ongoing 8th African Petroleum Congress and Exhibition tagged “CAPE VIII” in Luanda, Angola, the parties explained that the deal was aimed at scaling up private sector investment in African oil and gas projects.
The bank is expected to provide critical financing for new and existing oil and gas projects as well as energy developments across the entire value chain.
The Director and Global Head, Client Relations, Afreximbank, Rene Awambeng signed on behalf of the bank, while Nigeria’s Omar Farouk, Secretary General of APPO, appended his signature on behalf of African oil producers.
A communiqué by the parties stated that the deal was made possible having regard to the long, mutually beneficial relationship and cooperation between APPO and Afreximbank.
“The two African institutions have resolved to work together to find an Africa-led solution to the threat posed to the African oil and gas industry and an orderly energy transition in Africa by the withdrawal of funding by its traditional financiers.
“The two institutions have committed to taking necessary actions to promote a sustainable and balanced solution to the challenge of financing the oil and gas industry in Africa during the energy transition.
“This will be done through, among others, the establishment of an African energy transition bank dedicated to supporting an Africa-led energy transition strategy that is consistent with the goal of preserving the environment and livelihoods,” the African institutions said.
While the developed world calls for the end of fossil fuels due to climate change, Africa continues to face the crisis of energy poverty.
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