(lavoixdesentreprises.info) – In January 2025, Abuja, the Nigerian capital, will host the African Energy Bank, a major initiative aimed at revitalizing the continent’s energy sector. Driven by the desire to invest in a sustainable energy transition, this institution positions itself as a key player in addressing current challenges.
The forthcoming opening of the African Energy Bank (BAE) in Abuja, scheduled for January 2025, marks a significant step in the energy development of the African continent. Chosen as the headquarters of this institution, the Nigerian capital symbolizes a new beginning for an Africa that aspires to take control of its energy resources. The Central African Business High Council (HCA-AC) has expressed enthusiasm for this initiative, which responds to an urgent need for investment in a sector crucial for the continent’s economic future.
The investment deficit, estimated at $240 billion, poses a major obstacle to energy growth in Africa. To address this, Afreximbank, in collaboration with the African Petroleum Producers Organization (APPO), sealed an agreement on June 3 in Cairo. This partnership led to the establishment of the BAE, with an initial capital of $5 billion, evenly distributed among stakeholders. The central objective of this new institution is to support the transition to sustainable and autonomous energy on the continent while meeting the growing needs of the population.
In this context, Afreximbank envisions the Gulf of Guinea as a potential refining hub capable of exporting refined products to international markets. This aligns with a broader vision of promoting local currency exchanges through the African Payment and Settlement System (Papss), thereby reducing dependence on foreign currencies and stabilizing African economies.
The genesis of the BAE dates back to the 42nd session of the APPO Ministerial Council, held in Luanda in May 2022. On that occasion, a resolution was adopted to mandate the Secretary General of the APPO and the Director of the Africa Energy Investment Corporation (AEICORP) to collaborate with Afreximbank to establish this new bank. This decision was motivated by a collective awareness of the challenges associated with the global energy transition, which requires a paradigm shift.
Historically, fossil fuels have played a vital role in the industrialization and economic development of countries. However, these resources are increasingly criticized by the international community, which advocates for a transition to renewable energies. While developed countries may consider moving away from fossil fuels, Africa, rich in natural resources, must find a balance. With proven oil reserves estimated at over 125 billion barrels and gas potential exceeding 600 trillion cubic feet, the continent must exploit these resources to ensure access to modern energy for its population, which approaches one billion inhabitants.
The creation of the BAE addresses this crucial need. The institution’s mission is to finance the exploitation of Africa’s energy resources while prioritizing domestic markets. This approach aims to mitigate the risks that the energy transition could pose to African economies. The states that sign the BAE establishment treaty will be the primary beneficiaries of its services. Furthermore, national companies operating in the hydrocarbons and energy sectors, as well as any public or private entity contributing to industry development, will also have access to financial support.
In summary, the African Energy Bank presents a strategic response to complex challenges. It is poised to play a central role in financing a sustainable and dynamic energy industry, essential for Africa’s economic and social development. This ambitious project could redefine the continent’s energy landscape, placing Africa on the path to energy autonomy and inclusive development.
S.N.
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