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APPO, Afreximbank to establish energy transition bank

Renewables

The African Petroleum Producers’ Organization (APPO), and African Export-Import Bank (Afreximbank), are currently in talks to jointly establish an African Energy Transition Bank.

The decision is based on concerns about the threat posed to the African oil and gas industry and its economic development, by coordinated withdrawal of international trade and project financing from the industry.

In a Joint Communiqué issued yesterday, the duo said the project acknowledges the impact of climate change on Africa and is aware that poverty fosters accelerated environmental degradation.

It is also an admission of the need for an orderly and just transition that protects the environment and enhances living standards, and a commitment to environmental sustainability within the framework of the UN Sustainable Development Goals (UN SDGs) and African Union (AU) Agenda 2063.

“The two African institutions have resolved to work together to find an Africa-led solution to the threat posed to the African oil and gas industry and an orderly energy transition in Africa by the withdrawal of funding by its traditional financiers.

“The two institutions have committed to taking necessary actions to promote a sustainable and balanced solution to the challenge of financing the oil and gas industry in Africa during the energy transition.

“…the establishment of an African Energy Transition Bank dedicated to supporting an Africa-led Energy Transition strategy that is consistent with the goal of preserving the environment and livelihoods,” the communiqué said.

The two institutions have committed to taking necessary actions to promote a sustainable and balanced solution to the challenge of financing the oil and gas industry in Africa during the energy transition.

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