The African Petroleum Producers Organisation (Appo) and the African Export-Import Bank are teaming up to create a first-of-its-kind bank — the Africa Energy Bank (AEB) — to fund energy projects on the continent, particularly in the oil and gas sector.
Appo secretary-general Omar Farouk Ibrahim told the African Refiners & Distributors Association (Arda) Week in Cape Town the new bank — to be based in Nigeria and launched in June — would help the continent exploit its fossil fuel resources for its own benefit.
“While the bank mandate covers all sources of energy, our main focus will be oil and gas. And the reason is clear. Those who are putting pressure on us to abandon oil and gas want to develop green energy on our continent.”
He said an in-principle agreement to create the AEB was signed in 2022, and the required number of countries backing the institution had now been reached.
“For many years, we have come to accept that others will have the right of first refusal to energy that God has blessed us with to improve the lives of our people. It is only when those others have refused this right that we can use this energy.”
Energy is the lifeblood of economic development, yet many of our people face energy poverty
— Kanayo Awani, Afreximbank
Ibrahim said that while the bank will welcome funds from other organisations, development finance institutions and sovereigns from around the world, no non-African entity would be able to buy shares and possibly “hijack” the bank’s strategic objectives.
The executive vice-president of the Afreximbank, Kanayo Awani, said the AEB would be critical to providing electricity for the 600-million people on the continent who did not have it.
“Energy is the lifeblood of economic development, yet many of our people face energy poverty,” she said. “This is simply an injustice that we cannot ignore. It is inexcusable and will be an indictment on our future generations if we do not change it.”
Arda president Abdul Hamid said Africa had to look to its own resources and interests if it was to survive in a world where “everyone else is only taking care of themselves”.
“Continents are beginning to look inwards. The phrase ‘America first’ is now a common refrain. And because of that, we are starting to see that Europe is becoming independent. We also do not have a choice but to look inward, band together, determine our own agenda for our own growth.”
African Energy Chamber executive chair NJ Ayuk urged delegates at Arda Week to ensure that “Africa first” becomes a concrete plan of action rather than just a slogan.
“Africa first is something that we need today, and we need to put this ball out today; it means our time has come. Day in, day out, ensuring energy security is our priority, but that is not enough when 600-million Africans do not have access to electricity and 900-million do not have access to clean cooking.”
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