The African Petroleum Producers’ Organization (APPO) has called on members of pan-African organization the African Refiners and Distributors’ Association (ARDA) to become shareholders of the forthcoming Africa Energy Bank (AEB)
APPO aims to launch the AEB in the first half of 2025. The bank will focus on financing oil, gas and other energy projects in the upstream, midstream and downstream sectors.
“The African Energy Bank welcomes funds from investors across the entire value chain of the African energy industry,” stated Omar Farouk Ibrahim, Secretary General of APPO, in Cape Town on April 7.
According to Ibrahim, the bank is seeking an initial capitalization of $3 billion from APPO member countries, ARDA member countries, their national oil companies and pan-African financial institution Afreximbank. The organization is seeking $1 billion in financing from non-APPO countries and an additional $1 billion in financing from non-African investors.
In addition to financing, the AEB will offer advisory, capital market, trade and risk management services as well as asset liquefaction. APPO is targeting a total initial capitalization of $5 billion for the AEB.
