AfreximBank, APPO, mull creation of energy bank for Africa

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Uba Group

Uba Group

BY BAMIDELE FAMOOFO

Africa Export and Import Bank and the African Petroleum Producers’ Organization have issued a joint communiqué on the need to establish an African Energy Bank.

The need for Energy Bank arises from the withdrawal of funding for the continent’s oil and gas industry by the traditional international financiers.

“The two African institutions have resolved to work together to find an Africa-led solution to the challenge posed to the African oil and gas industry and an orderly energy transition in Africa by the withdrawal of funding by its traditional financiers,” a statement from AfreximBank read.

The trade bank noted that the two institutions have committed to taking necessary actions to promote a sustainable and balanced solution to the challenge of financing the oil and gas industry in Africa during the energy transition, through, among others, the establishment of an African Energy Transition Bank dedicated to supporting an Africa-led Energy Transition strategy that is consistent with the goal of preserving the environment and livelihoods.

The communiqué further disclosed that the partners are concerned about the challenge posed to the African oil and gas industry and Africa’s economic development, by coordinated withdrawal of international trade and project financing from Africa’s oil and gas industry, acknowledging the impact of climate change on Africa and aware that poverty fosters accelerated environmental degradation.

“We also acknowledge the need for an orderly and just transition that protects the environment and enhances living standards and committed to environmental sustainability within the framework of the UN Sustainable Development Goals (UN SGGs) and African Union (AU) Agenda 2063,” the communiqué read.