South Africa has expressed interest in becoming a founding member of the proposed Africa Energy Bank, a continent-wide initiative spearheaded by the Africa Petroleum Producers Organisation (APPO) and Afreximbank.
The bank aims to fund oil and gas projects across Africa, addressing the funding gap created by major banks’ shift away from climate-warming projects.
According to Jacob Mbele, Director-General of South Africa’s Department of Mineral Resources, the country has requested a prospectus from Afreximbank before committing to a funding figure.
The Africa Energy Bank, set to start operations by mid-2025, will be headquartered in Nigeria with an initial capitalization of up to $5 billion.
The bank will offer tailored funding solutions to meet Africa’s energy needs.
Afreximbank Senior Executive Vice President Denys Denya confirmed that the bank is in the capital-raising phase, with several countries already committing funds.
Denya expressed optimism that the bank will start trading before the half-year stage.
This development is expected to boost oil and gas projects across Africa, supporting the continent’s energy needs and economic growth.
Source: https://energynewsafrica.com
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