African institutions plan energy project bank

Continent’s leaders attempt to insulate oil and gas projects from changing investment landscape

The African Petroleum Producers’ Organisation (Appo) and multilateral African financial institution Afreximbank have signed a memorandum of understanding (MoU) to establish the African Energy Transition Bank. The bank is intended to “support an Africa-led energy transition strategy”, with specific reference to oil and gas projects as well as further development, environmental and climate-change-mitigation goals. “Africa’s oil and gas industry faces growing pressures as international investment in hydrocarbons diminishes,” says Afreximbank. The new bank “will enable a more efficient and predictable capital allocation between fossil fuels and renewables”, adds Afreximbank president Benedict Or