Dr Opoku Prempeh calls for establishment of African Energy Bank as international financing drops

The Minister of Energy, Dr Matthew Opoku Prempeh, has called for the establishment of an African Energy Bank which will be the financing citadel for Africa’s energy projects in the wake of the energy transition.

The call comes at the time international financing continues to drop as African countries pursue energy transition.
Contributing to the first panel session of the 2023 Africa Energy Week in Cape Town, South Africa on Tuesday, October 17, 2023, he said technology transfer, infrastructural development and most importantly, financing are key ingredients to achieving the respective net-zero targets for African countries.

The conference is on the theme, “Global Energy Security: The imperative of African Energy Development”.

Attempts
There have been a number of commitments by some industry players to establish an Africa energy bank, but all are yet to come to fruition.

Earlier this year, the African Petroleum Producers’ Organisation (APPO) planned to establish the Africa Energy Bank, aimed at providing financing for oil and gas projects in Africa.  The plan was announced as international financing institutions, including the World Bank, were scaling back their funding for oil and gas projects in Africa, citing stringent conditions and environmental concerns.

In 2022, the African Export-Import Bank (Afreximbank) signed an Agreement with the African Petroleum Producers Organization (APPO) to collaborate on the establishment of an African Energy Transition Bank in support of an Africa-led energy transition strategy.

Energy resources
Dr Opoku Prempeh stressed the need for Africa to continue to utilize all its energy resources without holding back. He said doing that is a key step to addressing energy poverty.

Insightful discussions
As insightful as the discussions were, in terms of the nuances and perspectives from his colleagues ministers, Dr Opoku Prempeh was hopeful that “our quest for a just and an equitable transition very much remain on course.”
He later met with senior officials of the United States Department of Energy with deliberations focusing on a potential collaboration in the nuclear energy space.