The African Export-Import Bank (Afreximbank) and the Organization of African Petroleum Producers (APPO) announced Tuesday the creation of the African Energy Bank to finance energy investments in the continent.

"With the aim of increasing private sector investment in oil and gas projects, the bank will secure critical financing for new and future oil and gas projects, as well as in energy development along the entire value chain," reads the statement sent to Lusa.

In the press release, neither the amounts involved in the creation of the bank nor the amounts of share capital that this new bank will have are disclosed, but the circumstances and motivations for the creation of this financial entity are described.

"Following the divestment of oil companies and changing global investment trends, the bank comes at a particularly critical time," the text points out, which reports on the signing of the memorandum of understanding, which was signed by Afreximbank's Director of Client Relations, Rene Awambeng and the APPO Secretary General, Omar Farouk, in the presence of the President of Angola, João Lourenço, African ministers and the Executive Chairman of the African Energy Chamber, NJ Ayuk.

The text argues that in recent years there has been a sharp decline in investment spending in Africa, which has fallen from $60 billion in 2014 to $22.5 billion in 2020, with a recovery expected to $30 billion this year.

"Despite this increase, there are significant levels of investment that are still needed, and so the role of African financial institutions has been emphasized, as while the developed world advocates an end to fossil fuels due to climate change, Africa continues to face an energy poverty crisis, with more than 600 million people without access to electricity and 900 million without access to clean food cooking solutions," the text highlights.

The proposed African Energy Bank "will operate in the same way as the African Energy Investment Corporation, a development finance institution set up to channel resources into energy sector development," the statement explains, concluding that "the benefits are to foster the development of Africa's energy sector and thereby socioeconomic growth."