African Petroleum Producers’ Organization set to launch Africa Energy Bank in July

The African Petroleum Producers’ Organization (APPO) is set to launch the Africa Energy Bank by July of this year. The primary objective of this bank is to provide financing for oil and gas projects within Africa, aiming to reduce reliance on external financing sources such as the World Bank, which often come with limitations.

To attract investment, the bank intends to reach out to countries like Saudi Arabia, the United Arab Emirates, Qatar, and Kuwait. This initiative comes at a time when funding for oil and gas projects faces challenges due to the global shift towards renewable energy in the era of energy transition.

The ministerial council of APPO had previously approved the establishment of the bank in the first half of 2024. Seven countries, including Ghana, Egypt, Nigeria, Benin Republic, Côte d’Ivoire, South Africa, and Algeria, have been shortlisted as potential hosts for the bank’s headquarters.

Dr. Omar Farouk Ibrahim, the secretary-general of APPO, revealed in an exclusive interview with Asaase News that the selection process will be expedited by scaling down the list of candidate countries from seven to three. This decision aims to streamline the selection process, given the time constraints.

He mentioned that Ghana remains a contender, along with six other countries, and the selection committee will convene to determine which countries will proceed to the next phase. One of the key requirements for hosting the Africa Energy Bank is to provide suitable headquarters facilities. Ghana has already showcased a property for consideration, and other countries have also demonstrated their readiness in this regard.