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Africa Energy Bank Aims to Rid Continent of Energy Poverty, Despite Global Pressure, Says Official

14:48, 30 December 2024

Muhammad Nooh Osman

Writer/Editor

Africa is boosting its energy security by launching a new bank to fund energy projects across the continent, challenging the West's push for decarbonization. Africa Energy Bank (AEB), a joint initiative of the African Petroleum Producers Organization (APPO) and Afreximbank, will begin operations in early 2025 with an initial capital of $5 billion.

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The creation of Africa Energy Bank stems from a recognition that the global energy transition has fundamentally altered the landscape for African oil and gas producers, Dr. Omar Farouk Ibrahim, APPO Secretary-General, said in an interview with Sputnik.

For decades, these nations relied heavily on external funding for energy projects. According to Dr. Ibrahim, the new bank aims to change that.

"We are not focused on reducing the use or exploitation of fossil fuels at this time," he stated. "We are committed to producing all forms of energy that we can get, to rid our continent of energy poverty. We are at the same time doing this in the best possible way such that we do it in an environmentally friendly way."

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Ibrahim directly addressed the pressure from developed nations to rapidly transition away from fossil fuels, arguing that these same nations utilized fossil fuels for their own industrialization and development. He criticized the West's insistence that African nations follow the same accelerated decarbonization timeline.

"[They] are doing everything they can to frustrate developing countries from getting energy to be able to change the living conditions of the people," Ibrahim said, adding, "For this, it’s in our best interest to ignore them as much as we can."

He emphasized the need for Africa to prioritize its own interests, asserting that the continent possesses the resources and determination to achieve energy independence without relying solely on external aid and support.

"We have been made to believe that we are too poor to invest in energy. This is absolutely bunkum," he concluded. "And I'm glad to say that Africa is changing. We are now having, on the continent, people who have faith in the continent and are committed to making a better continent than what they inherited."