By Atoyebi Nike
The African Petroleum Producers’ Organisation (APPO) and Afreximbank have confirmed progress on the planned $5 billion Africa Energy Bank, designed to address Africa’s persistent energy financing challenges.
Speaking at the AEW: Invest in African Energies workshop on September 29, APPO Secretary General Dr. Omar Farouk Ibrahim said the bank has already secured a significant portion of required funds. “We have achieved in two to three years what no other development bank has done in this timeline,” he noted.
Ibrahim stressed that Africa must lead its own energy financing, warning that over 600 million Africans still lack electricity, even though the continent exports most of its oil and gas.
Afreximbank Executive Vice President Haytham El Maayergi added that high borrowing costs and weak credit ratings penalize Africa. “We pay more per kilowatt before subsidies than anywhere else in the world,” he said.
Data presented at the workshop showed Africa receives only 4% of global climate investment, despite needing up to $1.9 trillion by 2030 for energy transition. The continent’s annual energy finance gap stands at $31-50 billion, while fossil fuels remain central to government revenues.
