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African Energy Bank moves to close continent’s $50bn energy finance gap
['Obinna Ezugwu']
Business Hallmark
The African Petroleum Producers’ Organization (APPO) and the African Export-Import Bank (Afreximbank) have announced significant progress in setting up the $5 billion Africa Energy Bank, a landmark initiative aimed at tackling the continent’s chronic energy financing shortfall.
The update was shared on Monday in Cape Town during African Energy Week (AEW): Invest in African Energies, at a workshop titled Africa Energy Bank Take-Off – Bridging the Financing Gap for Africa’s Energy Sector.
“Africa is being penalized – we pay more per kilowatt before subsidies than anywhere in the world, because the costs of financing energy projects are higher.
The annual energy financing gap is currently estimated at $31 billion to $50 billion.
The Africa Energy Bank, once operational, is expected to serve as a homegrown financing solution to drive energy projects across the continent, reduce reliance on external lenders, and strengthen Africa’s capacity to define its energy future.