In response to the coordinated withdrawal of international trade and project financing from Africa’s oil and gas industry, Afreximbank and APPO have signed an agreement for the creation of an African Energy Transition Bank. Image Credit: AEC
May 18, 2022/AEC
The African Export-Import Bank (Afreximbank) and the African Petroleum Producers Organization (APPO), who have had a long, mutually beneficial relationship, have signed an agreement for the joint establishment of an African Energy Bank at the 8th African Petroleum Congress and Exhibition (CAPE VIII) in Luanda, Angola.
All parties involved in the signing – Rene Awambeng, Director and Global Head Client Relations, Afreximbank, and Dr Omar Farouk, Secretary General of APPO, in the presence of H.E. João Manuel Gonҫalves Lourenҫo, President of the Republic of Angola, and APPO Ministers – are concerned about challenges faced by Africa’s oil and gas industry and the continent’s economic development, and all parties acknowledge the impact of climate change on the continent and the need for a just transition in line with the United Nations Sustainable Development Goals and the African Union Agenda 2063.
“As we address the energy transition challenges facing the world and Africa, we should be mindful of the fact that Africa still needs to rely on its natural resources, including oil and gas, for its future development. Through this new venture, Afreximbank and APPO are working towards achieving this vision,” Rene Awambeng, Director and Global Head Client Relations, Afreximbank said at the signing ceremony.
In line with the agreement, the two institutions have resolved to work together to find an African-led solution to combat the threat presented to the African oil and gas industry, brought on by the coordinated withdrawal of international trade and project financing, and have committed to taking necessary steps to find a solution to this challenge.
“The new bank will deal with the vacuum created by the withdrawal of international banks from the financing of oil and gas projects in Africa,” stated Awambeng, adding that, “It will be an African-led solution to address the threat posed to the African oil and gas industry from the shortages of funding. This will be a balanced solution with the goal of preserving both the environment and livelihoods.”