(Ecofin Agency) – Two years after the signing of the creation protocol, the African Energy Bank officially saw the light of day on June 4. This supranational bank will focus on financing oil and gas projects in Africa, with a view to filling the financing gap in these sectors and the energy deficit on the continent.
The African Energy Bank (AEB) was created this Tuesday, June 4, 2024. The establishment documents and charter were signed by Afreximbank and the African Petroleum Producers Organization (APPO), its two founding institutions.
Structured as a pan-African energy development bank, the AEB has an initial capital of $5 billion. It will focus on financing African oil and gas projects, without excluding renewable energy projects.
The operational launch of its activities is announced for next July. Apart from the founding institutions, two member countries have yet to sign and ratify the establishment agreement. The bank plans to welcome any investor who shares its mission and vision into its round.
The AEB was created to address the financing crisis in the African oil and gas industry, triggered by the withdrawal of foreign financiers and international investors, citing the global energy transition. This bank will exploit all forms of energy available on the continent, to fill the energy deficit.
“This moment marks an important step in our continent’s journey towards energy independence and sustainable development. By harnessing our resources, we are paving the way for a brighter and more prosperous future for all Africans,” enthused Tarek El Molla, member of the APPO ministerial council and Egyptian Minister of Petroleum and Mineral Resources.
As a reminder, the signing of the documents establishing the AEB takes place two years after the conclusion of the creation agreement protocol. Initially, the idea was conceived and incubated in Egypt, in December 2020.
Africa, which is home to the largest proportion of the world’s population living without access to energy, could fill this gap with its more than 125 billion barrels of crude oil reserves and its more than 600 trillion cubic feet of gas reserves. .
Chamberline Moko
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