The Africa Energy Bank, designed to finance oil and gas ventures across the continent, is expected to commence operations by mid-year, with South Africa signalling interest in joining, according to an Afreximbank executive.
A collaboration between Afreximbank and the African Petroleum Producers Organization (APPO), the bank aims to address a funding shortfall in Africa as global financial institutions face mounting pressure from environmental activists to divert investments away from fossil fuels.
“We are in the capital raising phase. A number of countries have already put in the money, (so) we’re talking to a number of countries to bring in the capital so that we can start trading,” Afreximbank Senior Executive Vice President Denys Denya said.
“Definitely we’ll start trading this year. We’re hoping that we can start trading before the half-year stage,” he told Reuters on Monday on the sidelines of Africa’s annual Mining Indaba in Cape Town, referring to the bank starting operations.
Afreximbank has yet to disclose the financial commitments made by participating nations.
Headquartered in Nigeria, the bank is projected to launch with an initial capitalization of up to $5 billion, offering specialized financial solutions to support Africa’s energy sector.
Denya noted that in addition to Angola, Egypt, Nigeria, and Ghana, several other nations, including South Africa—despite not being an APPO member—had expressed interest in joining the initiative.
The Department of Mineral Resources’ Director General Jacob Mbele confirmed to newsmen that South Africa had requested the bank’s prospectus before determining its financial commitment.
