African Energy Bank established with $5 billion in capital
By the AFREEQUE newsroom, based on Tribune Online and Vanguard
Afreximbank and the African Petroleum Producers’ Organization have established the African Energy Bank, with authorised capital of $5 billion, at its first general assembly in Abuja, according to Tribune Online and Vanguard. The institution will finance the energy supply chain, from exploration to distribution, amid estimated continental needs of $200 billion and the withdrawal of international lenders from fossil-fuel projects, the two outlets report.
Afreximbank said the establishment of the bank was intended to strengthen Africa’s productive capacity, reduce dependence on imported petroleum products and promote intra-African trade in energy products. The institution also aims to increase African participation in the energy sector so that the continent’s energy future is shaped by Africans, Vanguard reports, citing Afreximbank.
The bank will operate as an independent, supranational pan-African financial institution. Its first board will include representatives from the public and private sectors, as well as institutions responsible for public policy across the continent, Vanguard says. Afreximbank believes greater investment in electricity generation and transmission is needed to accelerate industrial growth and take advantage of emerging technologies, including artificial intelligence.
