The African Petroleum Producers Organization (APPO) is putting the finishing touches on plans to establish the African Energy Bank. The bank is being created to finance oil and gas operations in Africa in order to curb external financing which usually has its limits.
African member countries of the Organization of Petroleum Producers will work with the African Export-Import Bank to launch an energy bank by the end of the year, according to Dr. Omar Farouk Ibrahim, secretary general of the APPO.
The secretary general said in a goodwill message delivered at the sixth edition of the Nigeria International Energy Summit (NIES) held recently in Abuja, Nigeria, that the process of establishing the bank and cooperation between APPO and Afreximbank had reached an advanced level. . He also said that a decision on the location of its headquarters and a launch date will be made soon.
Dr. Omar Farouk Ibrahim, « Cela va se concentrer essentiellement sur le financement de projets pétroliers et gaziers sur le continent africain car les fonds se sont taris. »
Il a également noté que la Banque mondiale et d’autres institutions financières internationales qui financent généralement des projets pétroliers et gaziers en Afrique ferment leurs canaux de financement en plus d’avoir « des conditions strictes, ce qui n’a pas beaucoup de sens » compared to 20 or 30 years ago.
The organization hopes to attract investment from countries with significant interests in oil and gas development, such as Saudi Arabia, the United Arab Emirates, Qatar and Kuwait.
The bank was mentioned last year in Luanda, Angola, at the ninth African Petroleum Congress and Exhibition. The plan would solve the problems faced by national oil companies, according to Angolan President Joâo Manuel Lourenço, who spoke at the event last year.
The decision came at a time when environmental activists are pressuring several multinational banks to stop financing oil projects because of their high carbon emissions and the transition to sustainable energy.
In light of the net zero campaign, a number of major banks, including HSBC, Standard Chartered and Standard Bank, have said they are reviewing the loans they make for oil and gas projects.