The African Export-Import Bank (Afreximbank) and African Petroleum Producers’ Organization (APPO) have agreed to establish an African energy bank to address the threat faced by the continent’s oil and gas industry. The two organisations have therefore signed a Memorandum of Understanding (MoU) in that regard.
The MoU copied to Ghana Business News states among others:
“Concerned about the threat posed to the African oil and gas industry and Africa’s economic development, by coordinated withdrawal of international trade and project financing from Africa’s oil and gas industry,
Acknowledging the impact of climate change on Africa and aware that poverty fosters accelerated environmental degradation,
Acknowledging the need for an orderly and just transition that protects the environment and enhances living standards,
Committed to environmental sustainability within the framework of the UN Sustainable Development Goals (UN SGGs) and African Union (AU) Agenda 2063, the Africa We Want;
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, through, among others, 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.”