The Africa Energy Bank (AEB), a $5 billion initiative spearheaded by the Africa Petroleum Producers Organisation (APPO) and the Afreximbank, will commence operations in March 2025. APPO Secretary General, Mr. Omar Farouk Ibrahim, announced at the 13th Practical Nigerian Content Forum in Bayelsa, Nigeria, that $2.5 billion in funding has already been secured from member countries. The bank, headquartered in Nigeria, aims to address Africa’s reliance on external financing for its oil and gas industry, a dependency that has persisted for over a century.
Ibrahim highlighted the implications of the global shift toward renewable energy since the 2015 Paris Agreement, which has seen developed nations aggressively transition away from fossil fuels. He expressed concerns that these policies create barriers for African countries to access funding for fossil fuel projects, despite the continent’s vast oil and gas reserves. Africa, with over 125 billion barrels of proven oil reserves and 600 trillion cubic feet of gas, must leverage these resources to address its significant energy poverty and ensure modern energy access for nearly one billion people.
He emphasized the need for Africa to take control of its energy industry and financing to drive development and transform societies, as Western nations did over the past 150 years using fossil fuels. Ibrahim criticized the hypocrisy of these countries, which contributed 2,500 gigatons of emissions over decades, now imposing policies that hinder Africa’s ability to use its resources. The AEB aims to empower Africa by providing the financial backbone to capitalize on its energy resources while addressing energy poverty across the continent.
