Africa: The African Export-Import Bank Afreximbank and the African Petroleum Producers Organization APPO have signed a memorandum of understanding for the establishment of an energy bank. A first

In Africa, the requirements of the energy transition raise fears of the planned withdrawal of foreign capital from fossil fuels. However, the needs for energy production and demand have never been higher.

On May 17, the African Export-Import Bank (Afreximbank) and the African Petroleum Producers Organization (APPO) signed a memorandum of understanding for the establishment of an energy bank. The objective of the institution is to increase private sector investment in African oil and gas projects, in a context where foreign capital is expected to be reduced in the coming years, due to the demands of the energy transition.

The agreement was signed in Angola by Rene Awambeng, Director and Global Head of Client Relations of Afreximbank, and Omar Farouk, Secretary General of APPO, during the last meeting of APPO member countries. This, in the presence of President João Lourenço, APPO Ministers and the Executive Chairman of the African Energy Chamber (AEC), NJ Ayuk.

“This project comes at a particularly critical time for the African energy sector. The bank will provide essential financing for new and existing oil and gas projects, as well as for energy developments across the entire value chain,” an APPO statement explained.

In Africa, more than 600 million people still lack access to electricity and 900 million lack access to clean cooking solutions, leading stakeholders to call for energy justice, which is to let African countries move towards energy transition, at their own pace.

Analysts remain unanimous on the need for the continent to make greater use of its fossil fuel resources to solve its problem of energy poverty.