The proposed Africa Energy Bank which will help in funding oil and gas projects across Africa is set to begin operations this year with an initial capital base of $5 billion.
The bank, a collaboration between Afreximbank and the African Petroleum Producers Organization, is meant to help plug a funding deficit in Africa amid pressure on major banks from environmental groups to shift investment dollars away from climate-warming oil and gas projects, according to reports from Reuters.
The Managing Director of Africa Energy Investment Corporation (AEICORP), the investment arm of APPO, Zakaria Dosso, said, “Africa should set up its financing capability so that we can still develop this strategic sector, that is the rationale.”
He continued that Ghana had on Friday deposited just over $20 million to AEICORP, becoming the third African country to pay, after Africa’s top two crude oil producers, Nigeria and Angola, each deposited $10 million last year to help fund the bank.
“Africa Energy Bank is on the verge of becoming a reality and should be operational during the second half of 2024,” Dosso said.
At least $83 million is expected to be donated by each of Africa’s Member States in total, with an overall amount of about $1.5 billion. Founding members Afreximbank and APPO of the Africa Energy Fund are anticipated to provide an equal amount of funding.
According to Dosso, who is part of the Interim Management Committee responsible for setting up AFE, six countries Algeria, Benin, Cote d’Ivoire, Ghana, Nigeria, and South Africa have already expressed their interest in hosting its headquarters. The original application has been withdrawn by Egypt.
Dosso noted, “Angola, Libya, Senegal, Venezuela, and Afreximbank as members of the selection committee will assess all applicants and present their results before ministers take a final decision.”
