The African Petroleum Producers’ Organisation (APPO), and African Export-Import Bank (Afreximbank) have called for the establishment of an African Energy Transition Bank.
The call is contained in a joint communiqué issued by the Press Office of Afreximbank at the end of a meeting with APPO in Luanda, Angola.
According to the communiqué, the aim is to support an Africa-led Energy Transition strategy that is consistent with the goal of preserving the environment and livelihoods.
The communiqué said that the two institutions had 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.
It said the decision had become necessary because of 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.
The communiqué also acknowledged the impact of climate change on Africa, adding that poverty fostered accelerated environmental degradation.
It also reiterated both institutions commitment to environmental sustainability within the framework of the UN Sustainable Development Goals (UN SDGs) 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.
“Through the withdrawal of funding by its traditional financiers.”