Image Credit | Pixabay | Visual for illustration purpose
2 minutes read

New Africa Energy Bank to Invest $5bln in oil and gas projects

The proposed Africa Energy Bank, which will focus investment in oil and gas projects across the continent, is set to start operations later this year with an initial $5bn authorised capital base, a senior official said.

The bank, a partnership between Afreximbank and the African Petroleum Producers Organisation (APPO), is meant to help plug a funding gap in Africa amid pressure on major banks from environmental groups to shift investment dollars away from climate-warming oil and gas projects.

“Africa should set up its own financing capability so that we can still develop this strategic sector, that is the rationale,” Zakaria Dosso, managing director of Africa Energy Investment Corporation (AEICORP), the investment arm of APPO, said.

He told Reuters that Ghana on Friday deposited just over $20m to AEICORP, becoming the third African country to pay after Africa’s top two crude oil producers, Nigeria and Angola, each deposited $10m 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.

Middle East investment

It is envisaged that each African member country will contribute a minimum of $83m for a total of around $1.5bn, while Afreximbank and APPO as founder members of AFE are expected to match this amount.

The outstanding $2bn will potentially be sourced from other investors, including Middle Eastern sovereign wealth funds.

Afreximbank did not immediately respond for comment.

Dosso, who is part of the interim steering committee charged with setting up AFE, said six countries – Algeria, Benin, Cote d’Ivoire, Ghana, Nigeria and South Africa – are currently competing to host the headquarters of AFE.

Egypt withdrew its initial application.

“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,” Dosso said.


Legal Disclaimer:
GLOBAL FLOW CONTROL provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above. "

Latest News

  • LNG and Industrial Gases
    1 minute read

    Technip Energies awarded new contract at…

    19 Jun. 2024 | Global Flow Control
  • Hydrogen and Carbon Capture
    3 minutes read

    McDermott Selected by Abraxas Power for…

    19 Jun. 2024 | Global Flow Control
  • Mining and Metals
    2 minutes read

    Occidental Petroleum and Berkshire Hathaway Join…

    18 Jun. 2024 | Global Flow Control
  • Renewables
    2 minutes read

    USA invests $126 Million in Indonesian…

    18 Jun. 2024 | Global Flow Control