By Ayomide Otitoju
The African Petroleum Producers’ Organization (APPO) and the African Export-Import Bank (Afreximbank) have announced significant progress in the creation of the $5 billion Africa Energy Bank, an initiative designed to address the continent’s persistent energy financing shortfalls.
Speaking at a workshop titled “Africa Energy Bank Take-Off – Bridging the Financing Gap for Africa’s Energy Sector” during AEW: Invest in African Energies on Monday, APPO Secretary General Dr. Omar Farouk Ibrahim said the bank had made rapid strides in mobilizing resources.
“We have succeeded in raising a large chunk of the funds we needed to get this bank started. In the last two to three years, we have achieved what no other development bank has in terms of the timeline,” Ibrahim stated.
Highlighting the scale of Africa’s energy challenges, he noted that more than 600 million people on the continent lack access to electricity, even as Africa exports 75% of its oil production and 45% of its gas. “If we want energy for our people, then we have to fund the projects ourselves,” he said, stressing the need for African-led solutions.
Echoing the call, Afreximbank Executive Vice President Haytham El Maayergi pointed to the high cost of financing. “Africa is being penalized—we pay more per kilowatt before subsidies than anywhere else in the world, because the costs of financing energy projects are higher. When we borrow, we pay more because our credit ratings are not as high. It’s a toll on Africa,” he said.
The Africa Energy Bank, once fully operational, is expected to provide dedicated funding for energy projects across the continent, reducing reliance on external financing and ensuring greater access to affordable energy.
