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Deal for Africa Energy Bank signed in Egypt

5 June 2024

African Export-Import Bank (Afreximbank) and the Africa Petroleum Producers’ Organisation (APPO) have signed the establishment document for the Africa Energy Bank (AEB) in Cairo with an initial sum of $5bn.

The new entity’s primary focus will be financing oil and gas projects in Africa at a time when Western banks are under pressure to avoid financing projects that have a high carbon footprint.

The signing ceremony was held at the Egyptian Ministry of Petroleum and Mineral Resources after more than two years of negotiations.

A memorandum of understand (MoU) regarding the formation of the AEB was originally signed in May 2022.

After intense negotiations about where the bank would be headquartered, Cairo was picked as the location.

The AEB has been structured as an independent and supranational pan-African energy development bank and is scheduled to start operations in July.

Now that the establishment documents have been signed by the two founding institutions, at least two member countries now need to sign and ratify the establishment documents.

In a statement, Afreximbank said: “The AEB was created to address the impending funding crisis in the African oil and gas industry, triggered by the global energy transition.

“Traditional financiers, on whom Africa has relied for decades, are withdrawing support, particularly in Africa, citing climate change concerns as the primary reason.”

It added: “The AEB’s primary objective is to fill the imminent void that the withdrawal of funding for oil and gas projects in Africa by the traditional financiers could cause to the industry.”

Egypt’s oil minister, Tarek El Molla, who is also a member of the APPO Ministerial Council, said: “It is a great honour to witness the establishment of the Africa Energy Bank.

“This moment marks a significant milestone in our continent’s journey towards energy independence and sustainable development.

“By harnessing our collective resources and expertise, we are paving the way for a brighter, more prosperous future for all Africans.

“The collaboration between Afreximbank and APPO is a testament to our unwavering commitment to powering Africa’s growth and ensuring energy security for generations to come.

Nj Ayuk, the executive chairman of the energy advocacy group African Energy Chamber, said: “The AEC is proud to see organisations such as APPO and Afreximbank taking concrete steps towards financing African energy projects.

“Despite ongoing pressure to relinquish fossil fuel financing and redirect capital towards renewables, these organisations are promoting a just transition in Africa – one that prioritises Africa’s development and recognises the role oil and gas plays.

“The Africa Energy Bank will play a catalysing role in expanding the energy industry in Africa while driving sustainable and equitable growth for the continent’s population.”

https://image.digitalinsightresearch.in/uploads/NewsArticle/11863657/main.jpg
Wil Crisp

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    The overarching shape of Israel’s military campaign is ominously familiar, echoing the 1978, 1982, 1985 and 2006 Israeli invasions of southern Lebanon – all entailing creeping encroachment without strategic resolution.

    Since fighting resumed on 2 March 2026, Israeli forces have gradually pushed north, crossing north of the Litani for the first time since the 2006 Lebanon war and seizing Beaufort Castle above Nabatieh on 31 May.

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    As with Russia in Ukraine, Tel Aviv is being tactically embarrassed by the advent of these fibre‑optic drones, which are immune to jamming and – of particular concern to Israeli forces – are too small to be reliably detected and intercepted by conventional counter‑drone systems.

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    Tehran as the lever

    Planned strikes on Beirut, including on 3 June, have been held off in recent weeks under pressure from Washington after Tehran made Lebanon a bargaining chip in its wider negotiations with the US, repeatedly suspending talks following Israeli escalation in the Levant country.

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    With a Gulf ceasefire and the reopening of the Strait of Hormuz both riding on the outcome, Washington is strongly motivated to keep Israel from striking Beirut.

    In this way, Iran is one of the few powers wielding any leverage over Israel’s actions in Lebanon – even if that leverage is a source of discomfort for Lebanon’s leaders, for whom Tehran’s clout contrasts starkly with their own lack of influence.

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    Within hours, Hezbollah leader Naim Qassem rejected the declaration, stating that any ceasefire must cover the south and begin with Israeli withdrawal, not Hezbollah’s.

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    Register for MEED’s 14-day trial access 

    The government-owned Iraq Cement State Company (ICSC) has invited companies to bid for three projects to develop cement plants in the country.

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