Africa Energy Bank formally set up in Abuja
Afreximbank and the African Petroleum Producers' Organization formally established the Africa Energy Bank at its inaugural general meeting in Abuja on 31 Oct, according to OilPrice.com. The bank, which will finance oil and gas projects across Africa, was officially launched this week, Climate Home News reports. Its founders say oil and gas remain vital to Africa's energy systems. The bank has $5 billion in authorized capital, with about $500 million mobilized so far. Its creation came more than four years after work began and about 20 months behind schedule.
Key facts
- Abuja was chosen over bids from six countries, including Ghana, Algeria, South Africa and Benin.
- Helmy Ghazi, formerly deputy CEO of HSBC Bank Egypt, is the bank's first president.
- Afreximbank contributed $222 million, and Nigeria contributed between $100 million and $200 million.
- African oil deposits are estimated at about 125 billion barrels of crude.
- African gas deposits are estimated at more than 600 trillion cubic feet.
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Why it matters
The bank is a new public financing channel for oil and gas projects across the continent, with capital still largely unmobilized.
What changed
First published from OilPrice.com and Climate Home News