Africa Energy Bank launches with $5 billion in capital

CAIRO, June 4, 2024 – The Africa Energy Bank (AEB), a fund created to address gaps in oil and gas project finance in Africa, has been formally established in Cairo with a capital base of USD 5 billion, its founding organisations announced on Tuesday.

The bank was launched by the African Export–Import Bank and the African Petroleum Producers’ Organization (APPO).

The Charter of the Africa Energy Bank and the related establishment agreement were signed at a ceremony held at the Ministry of Petroleum and Mineral Resources in Cairo, Egypt, in an event hosted by Minister Tarek El Molla.

The signing ceremony concluded two years of negotiations between the member countries.

“The AEB was created to address the impending funding crisis in the African oil and gas industry, triggered by the global energy transition,” APPO said in a press release.

In a public presentation on the bank, Afreximbank has said it will “accelerate Africa’s economic development, whilst ensuring this progress is compatible with, and complementary to, the UN Sustainable Development Goals as well as the continent’s long-term social and environmental objectives as set out in the African Union’s Agenda 2063: The Africa We Want.”

With the signing of the AEB’s establishment agreement, prospective member countries are now invited to ratify the documents.

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