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Africa Energy Bank raises $2.5 billion and will start operations in March 2025

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Africa Energy Bank récolte 2,5 milliards de dollars et débutera ses opérations en mars 2025

At the 13th Practical Nigerian Content (PNC) Forum, the Secretary General of the African Petroleum Producers Organisation (APPO), Omar Farouk Ibrahim, revealed a major breakthrough for the African energy sector. The African Energy Bank (AEB), with an initial capital of $5 billion, is expected to begin operations by March 2025, barring any unforeseen developments.

Created in partnership with Afriexim Bank, AEB is a strategic response to the financial challenges facing the African energy industry, particularly in a global context marked by the energy transition.

According to Mr Ibrahim, the Bank has already secured $2.5 billion in contributions from APPO member countries, marking a first milestone towards its initial funding target. Nigeria, which won the right to host the institution's headquarters in July 2024, stood out from other candidates such as Ghana, Algeria, South Africa and the Republic of Benin.

"The African Energy Bank is essential to enable the continent to finance and control its own energy industry," said Mr Ibrahim, stressing that access to African financing is now crucial, given the increasing restrictions imposed by Western investors on fossil fuel projects.

Since the 2015 Paris Agreement, the world has begun a shift towards renewable energy, pushing fossil fuels into the background. This shift, dubbed the "energy transition", has had a disproportionate impact on Africa, a continent where many economies depend on oil and gas resources.

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Mr Ibrahim deplored the fact that, although the global North has profited from hydrocarbons for its development for more than 150 years, it is now imposing policies limiting access to financing for fossil fuel projects in Africa. "Are we going to leave our resources untapped because those on whom we depend have decided to move away from them?

With more than 125 billion barrels of proven reserves and 600 trillion cubic feet of natural gas, Africa has considerable energy potential. For Mr Ibrahim, the challenge is clear: to use these resources to transform the continent, reduce the energy poverty that affects nearly a billion people, and finance a clean and sustainable energy transition.

"Oil and gas have transformed Western societies in 150 years. We need to do the same to improve living conditions for our people", he insisted.

The creation of the African Energy Bank marks a decisive step for the continent. It aims to empower African countries, enabling them to control their energy industry and invest in the infrastructure needed to maximise the benefits of natural resources.

With AEB operations scheduled for early 2025, this initiative symbolises Africa's collective determination to meet the world's energy challenges while capitalising on its resources for equitable and sustainable development.

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