Africa is preparing to establish a new bank aimed at enhancing energy security and eradicating energy poverty.
The African Energy Bank (AEB), a joint initiative of the African Petroleum Producers Organization (APPO) and Afreximbank, will provide support for energy projects across the continent. The bank is set to commence operations in early 2025 with an initial capital of $5 billion.
APPO Secretary-General Dr. Omar Farouk Ibrahim stated that the establishment of the African Energy Bank is a response to the recognition of the global energy transition’s impact on the continent. After decades of reliance on external financing for energy projects, Africa aims to build a self-sufficient system through this initiative.
Energy Production Including Fossil Fuels
Dr. Ibrahim emphasized the ongoing need for fossil fuels, stating, “Our goal is to eradicate energy poverty on our continent by utilizing all available resources. We are committed to doing so in an environmentally responsible manner.”
He criticized calls from developed nations to phase out fossil fuels, reminding that these countries built their development on such resources. “It is unfair to demand rapid decarbonization from Africa,” he said, asserting that the continent would prioritize its own energy interests despite external pressures.
Commitment to Energy Independence
Dr. Ibrahim expressed confidence in Africa’s ability to invest in energy projects, declaring, “The notion that we are too poor to invest in energy is completely false.” He stressed the continent’s determination to shift this perception.
The African Energy Bank aims to finance energy projects, reduce external dependence, and support economic development. By effectively utilizing its own resources, Africa is targeting energy independence and looking forward to a brighter future through this new initiative.
