Afreximbank Establishes US$5 Billion Energy Bank

en.Wedoany.com Reported - On October 31, the African Export-Import Bank (Afreximbank) and the African Petroleum Producers' Organization officially established the Africa Energy Bank in Abuja, Nigeria's capital, with authorized capital of US$5 billion. The institution held its first shareholders' meeting that day, completing the appointment of its inaugural president and the formation of its first board of directors, and confirming that it will provide financing for oil and gas and other energy projects across Africa.

The first shareholders' meeting appointed Helmy Ghazi as the inaugural President of the Africa Energy Bank and formed its first board of directors with representatives from the public sector, private sector and policy institutions. Under the establishment arrangements, the Africa Energy Bank will operate as an independent supranational pan-African financial institution, attracting capital contributions from African governments, national oil companies, financial institutions and private investors.

Its financing operations will cover multiple segments of the energy value chain, including oil and gas exploration and production, oil and gas transportation, processing, refining and product distribution. The funds are intended for African energy development projects, while also supporting intra-regional trade in energy products and the development of petroleum product production capacity.

According to a joint statement issued by the two founding institutions, investment demand in Africa's energy sector is estimated at US$200 billion. The Africa Energy Bank will raise funds within its authorized capital framework and provide financing support for projects across the energy value chain.