July 14, 2024
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Race for Africa Energy Bank HQ Heats Up

Nigeria’s ambition to host the headquarters of the Africa Energy Bank, a proposed initiative aimed at supporting investments in the continent’s hydrocarbon sector, is facing stiff opposition from neighboring countries and other stakeholders, OilPrice.com reports.

The decision on the location of the new institution, expected to play a pivotal role in financing energy projects across Africa, is set to be finalized by the end of this month. Ahead of this crucial decision, intense lobbying efforts have been reported in African media.

The concept of establishing an African energy bank was conceived by the African Petroleum Producers’ Organization, with support from the African Export-Import Bank.

This initiative is deemed crucial for the future of Africa’s energy industry, particularly in light of international lenders’ reluctance to finance projects associated with the continent’s hydrocarbon resources due to concerns related to the global energy transition.

Nigeria, as the largest oil producer on the continent, emerges as a logical choice to host the Africa Energy Bank, which is slated to begin with an initial capital of $5 billion.

Despite Nigeria’s strong candidacy, opposition has emerged from several quarters, including Ghana, South Africa, Egypt, Benin, Ivory Coast, and Algeria. These countries have united to resist Nigeria’s bid for hosting the bank’s headquarters, according to This Day.

Other nations that will be taking the decision at the end of this month include Angola, Cameroon, Republic of Congo, Democratic Republic of Congo, Equatorial Guinea, Libya, Niger Republic and Senegal, while Venezuela is an honorary member.

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