The African Petroleum Producers’ Organization (APPO) has signed a Memorandum of Understanding (MOU) with the African Export–Import Bank (Afreximbank) for the creation of an Africa Energy Bank to address the financing challenges of Oil and Gas projects caused by the paradigm shift from fossil energy to renewable energies in the era of the Energy Transition.

The event which marked an epoch in the annals of Africa’s Oil and Gas Industry took place at the opening ceremony of the 8th African Petroleum Congress and Exhibition (CAPE VIII) in Luanda, Angola on 16th May 2022 and was witnessed by the President of the Republic of Angola, His Excellency, Joâo Manuel Gonçalves Lourenço.

APPO was represented by its Secretary General, Dr. Omar Farouk Ibrahim while Afreximbank was represented by Mr. Rene Awambeng, Global Head and Director, Client Relations. The MOU would enable APPO’s financial arm, AIECORP and Afreximbank negotiate and come up with details of terms and conditions of the Energy bank to enable a final sign off.

Speaking at the event, His Excellency, President Joâo Manuel Gonçalves Lourenço welcomed the signing of the MOU between APPO and Afreximbank and lauded APPO for its efforts and commitments in mobilizing finances for the sustainance of Africa’s oil and gas industry. The signing of the MOU with Afreximbank, he stressed, was an outcome of these sustained efforts and commitments. The President also welcomed the initiative of organizing the 1st Summit of Heads of State of the APPO Member Countries stating that it will be the appropriate framework to boost the dynamics of Africa’s position in the Energy transition agenda.

President Joâo Manuel Gonçalves Lourenço also commended the solidarity of APPO Member Countries as well as their resolve to meet the challenges faced in efforts to control oil operations by National Companies and technology transfer for the improvement of the living conditions of its populations.

In his address, APPO’s President and Angola’s Minister of Petroleum and Mineral Resources, His Excellency, Mr. Azevedo Diamantino Pedro recalled the transformation of APPO following its reform in 2019 in response to the new paradigm following the Paris climate agreements. He listed the evolution of the organization and its achievements since its creation 35 years ago to include collaboration with partner organizations as well as various studies including the Study on the Future of Oil in the Light of the Energy Transition. The study, he revealed, led to the establishment of the Long-Term Strategy Committee, an instrument to guide the actions of the APPO and its Member Countries in the coming decades.

While welcoming guests, APPO’s Secretary General, His Excellency, Dr. Omar Farouk Ibrahim stated that the scientific framework of the Congress is intended to be a critical analysis of the challenges being faced with the energy transition and the way forward for African oil-producing countries especially in terms of innovative and sustainable solutions

At an extraordinary session of APPO’s Council of Ministers before the signing ceremony, the ministers unanimously supported the project and encouraged the Secretary General of APPO and the Director General of AEICorp to strive towards its quick actualization while maintaining the general interest of APPO and its Member Countries. They further described the project as viable and of paramount importance to Africa at a time when international investors are pulling out of funding of projects related to fossil fuels. They expressed optimism that the bank will provide an alternative for Africa as it faces the challenges of the energy transition.