Ghana, Nigeria & Angola Commit US$120.4 Million Towards Operationalisation Of African Energy Bank

Three oil-producing African nations—Ghana, Nigeria, and Angola—who are members of the African Petroleum Producers’ Organization (APPO), have committed a total of US$120.8 million towards the operationalisation of the African Energy Bank, this portal can confirm.

Of this amount, Nigeria, which will host the African Energy Bank, has contributed US$91.4 million, while Ghana has contributed US$20.4 million and Angola US$10 million.

The contributions so far fall short of the US$500 million required to begin operating the bank. With only three countries having made payments, it means the remaining 15 APPO member states have not contributed any portion of the US$83.33 million each member is expected to pay.

While in Angola recently, APPO Secretary-General Dr. Omar Farouk Ibrahim disclosed that the official launch date of the Energy Bank will be decided at the next ministerial meeting. However, this platform cannot confirm whether APPO will proceed with the launch since the minimum required amount has not yet been raised.

The idea of establishing the African Energy Bank was first proposed in 2022 during the 8th African Petroleum Congress and Exhibition in Luanda, Angola. It followed a decision by several international banks to withdraw funding for oil and gas projects as part of the ongoing global energy transition.

APPO, in partnership with the African Export-Import Bank (Afreximbank), projected raising US$5 billion as the base capital for the bank. Each of the 18 member countries agreed to contribute US$83.33 million, totaling approximately US$1.5 billion as the initial capital.

Currently, the continent’s energy finance gap is estimated to measure between $31 billion and $50 billion, and the global energy transition has seen financing – specifically for fossil fuel projects – reduced even further.

Concurrently, despite promises of receiving billions in climate financing from the global north, Africa receives less than 3% of global energy investment, highlighting a fundamental challenge given that over 600 million people are living without access to electricity across the continent.

Source: https://energynewsafrica.com