Poised to fill the vacuum created by a coordinated withdrawal of international trade and project financing from Africa’s oil and gas industry, the African Export-Import Bank (Afreximbank) and the African Petroleum Producers Organization (APPO), on Wednesday announced the signing of an agreement to establish an African Energy Bank at the eighth African Petroleum Congress and Exhibition in Luanda, Angola.
The deal followed concerns by APPO Ministers about challenges faced by the African oil and gas industry, as well as the continent’s economic development, with all parties acknowledging the impact of climate change on the continent and the need for a just transition in line with the United Nations Sustainable Development Goals and the African Union Agenda 2063.
Rene Awambeng, Director and Global Head Client Relations, Afreximbank, and For Dr Omar Farouk, Secretary-General of APPO, signed for their organizations at a ceremony witnessed by João Manuel Gonҫalves Lourenҫo, President of the Republic of Angola.
A statement issued at the end of the ceremony quoted Awambeng as stressing that in addressing “the energy transition challenges facing the world and Africa, we should be mindful of the fact that Africa still needs to rely on its natural resources, including oil and gas, for its future development. Through this new venture, Afreximbank and APPO are working towards achieving this vision.
“The new bank will deal with the vacuum created by the withdrawal of international banks from the financing of oil and gas projects in Africa. It will be an African-led solution to address the threat posed to the African oil and gas industry from the shortages of funding. This will be a balanced solution with the goal of preserving both the environment and livelihoods,” he added.
In line with the agreement, the two institutions said they have resolved to collaborate in finding an African-led solution to combating the threat presented to the African oil and gas industry, brought on by the coordinated withdrawal of international trade and project financing, and have committed to taking necessary steps to find a solution to this challenge.