The idea of the Africa Energy Bank (AEB) is closer to realization than ever as Nigeria, Angola and Ghana, in a recent development, fulfilled their capital commitments.
The request presented by the African Petroleum Producers Organisation (APPO) in an initiative to promote Africa’s energy sector, demands $83 million from each of its 18 member states. It set a target of $5 billion in total capitalisation.
The capital contribution by the trio is a milestone as other countries are expected to follow suit in alignment with the bank’s goal of commencement in the first half of 2025. More so, the capital contribution propels the amount needed to initiate the bank’s operations up by 44%.
Algeria, Benin, the Republic of Congo, Equatorial Guinea and Ivory Coast have pledged to make payments.
Omar Farouk Ibrahim, Secretary General of APPO, made this announcement at the Congo Energy & Investment Forum.
Africa Energy Bank, AEB
The AEB was initiated to provide financial support in the energy sector in Africa. It will help address funding challenges encountered in oil and gas projects across the continent. In 2024, it was concluded that Nigeria would host the AEB bank headquarters.
These challenges include those brought by the withdrawal of Western financial institutions from supporting fossil fuel initiatives due to environmental concerns.
AEB hopes to provide tailored financing solutions that will help accelerate, enhance and drive economic growth through energy projects and security. More so, it is strategically positioning itself to respond to the unique needs of the continent’s energy landscape.
Generally, it is being perceived as an investment gateway that will help Africa circumvent all financing gaps.
