DGAP-News African Energy Chamber: Afreximbank, African Petroleum Producers Organization (APPO) Sign MoU for the Creation of a Multi-Billion-Dollar Energy Bank
DGAP-News: African Energy Chamber / Key word(s): Miscellaneous
Afreximbank, African Petroleum Producers Organization (APPO) Sign MoU for the Creation of a Multi-Billion-Dollar Energy Bank
The Memorandum of Understanding will see both entities working together on the creation of a pan-African energy bank
JOHANNESBURG, South Africa, May 17, 2022/APO Group/ -- Pan-African multilateral trade finance institution, the African Export-Import Bank (Afreximbank), has signed a Memorandum of Understanding
(MoU) with the African Petroleum Producers Organization (APPO) for the creation of a multi-billion-dollar energy bank. Aimed at scaling up private sector investment in African oil and gas projects,
the bank will provide critical financing for new and existing oil and gas projects, as well as energy developments across the entire value chain. Following international oil company divestment and
the shift in global investment trends, the bank comes at a particularly critical time for Africa’s energy sector.
The MoU was signed by Mr. Rene Awambeng, Director & Global Head, Client Relations, Afreximbank, and Dr Omar Farouk, Secretary General of APPO, in the presence of H.E. João Lourenço, President of the Republic of Angola, APPO Ministers and African Energy Chamber (AEC) Executive Chairman NJ Ayuk.
While the developed world calls for the end of fossil fuels due to climate change, Africa continues to face the crisis of energy poverty. Over 600 million lack access to electricity and 900 million lack access to clean cooking solutions, leading to stakeholders calling for the rapid expansion of the oil and gas sector, recognizing the role these resources play in making energy poverty history. Despite these calls, global investors are shying away from hydrocarbons, leaving the continent without the investment it needs if it is to capitalize on its resources.