The proposed Africa Energy Bank, which aims to fund oil and gas projects across the continent, is set to start operations by mid-year this year, with South Africa also indicating interest to join.
The bank, a partnership between Afreximbank and the African Petroleum Producers Organization (APPO), is meant to help plug a funding gap in Africa amid pressure on major banks from environmental groups to shift investment dollars away from climate-warming oil and gas projects.
“We are in the financing phase. Some countries have already committed to financing, (so) we are talking to some countries to bring capital so that we can start working,” said Denys Denya, a senior manager at Afreximbank.
“We will work to be operational within six months this year,” he told Reuters on Monday during the annual African Mining conference in Cape Town, referring to the bank’s launch.
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Afreximbank has yet to announce any financial commitments from member countries.
Headquartered in Nigeria and with an initial capital of $5 billion, the bank offers financial solutions to Africa’s energy needs.
Denya said several countries have expressed interest in joining the bank, including Angola, Egypt, Nigeria, Ghana, and South Africa, which are non-APP members.
Mineral Resources Department Minister Jacob Mbele confirmed to Reuters that South Africa was interested in the project and had asked for a report from the bank before approving financing.
