South Africa is applying to be a founding member of the future African Energy Bank.

South Africa has expressed interest in becoming a founding member of the African Energy Bank, a pan-African initiative led by the African Petroleum Producers Organisation (APPO) and Afreximbank.

This new financial institution aims to fill the financing gap for oil and gas projects on the continent, in the face of the gradual withdrawal of the major international banks due to climate concerns.

According to Jacob Mbele, Director General of South Africa's Department of Mineral Resources, the country has requested a prospectus from Afreximbank in order to assess the terms and conditions of participation before committing to an amount of financing.

The headquarters of the African Energy Bank will be located in Nigeria, and operations are scheduled to begin in mid-2025. With an initial capitalisation of up to 5 billion dollars, this institution will offer financing solutions tailored to Africa's energy needs.

Denys Denya, Senior Executive Vice President of Afreximbank, confirmed that the bank is currently in the process of raising capital, with several countries having already committed funds. He expressed optimism that the bank would be operational by the end of the first half of 2025.

This ambitious project should boost Africa's oil and gas sector, thereby promoting the continent's energy and economic development.