On June 4, 2024, the African Export-Import Bank (Afreximbank) and the African Petroleum Producers’ Organization (APPO) formalized the creation of the African Energy Bank (AEB) by signing the establishment agreement and charter of the new institution. This historic event marks a crucial step towards the African continent’s energy independence and sustainable development.
The AEB, a Response to the Challenges of the Energy Transition
Faced with the gradual withdrawal of traditional financiers from funding oil and gas projects in Africa, the AEB aims to fill this void and support the African energy sector. With an initial capital of US$5 billion, the bank will focus on financing oil and gas projects while remaining open to renewable energies.
A Pan-African Institution at the Service of Development
The AEB is structured as an independent and supranational pan-African energy development bank. Its ownership is open to all investors who share its mission and vision, thus encouraging inclusive continental collaboration.
Enlightened Leadership for an Autonomous Africa
Professor Benedict Oramah, President of Afreximbank, stressed the importance of the AEB for Africa’s future: “This moment marks a significant step in our continent’s journey towards energy independence and sustainable development.” He also commended the crucial role of APPO in the creation of this new institution.
A Crucial Step Towards Eradicating Energy Poverty
The AEB aims to play a decisive role in eradicating energy poverty in Africa. Indeed, the continent has significant oil and gas reserves, but a large part of its population still does not have access to modern energy. The AEB will make it possible to finance projects that will help bridge this gap and improve the lives of African populations.
A Historic Signature for a Promising Future
The signing of the AEB’s establishment agreement is a major milestone for Africa. This new institution has the potential to transform the continent’s energy landscape and contribute to its sustainable socio-economic development.
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