Latest news with #OmarFaroukIbrahim
Zawya
4 days ago
- Business
- Zawya
African Petroleum Producers Organization (APPO) Secretary General Joins Angola Oil & Gas (AOG) 2025 Ahead of Energy Bank Launch
Omar Farouk Ibrahim, Secretary General of the African Petroleum Producers Organization (APPO), will speak at this year's edition of the Angola Oil&Gas (AOG) conference – the country's premier industry event, scheduled for September 3-4 in Luanda. Ibrahim's return to the conference reflects his commitment to supporting oil and gas projects in the country and comes as the organization prepares to launch the Africa Energy Bank (AEB) – a financial institution created in partnership with the African Export-Import Bank (Afreximbank). Established with the aim of improving access to financing for African oil and gas projects, the AEB is on track to commence operations in June 2025, with the finalization of key arrangements made in April 2025. Headquartered in Abuja, Nigeria, the bank will have an initial capitalization of $5 billion, supported by an $83 million commitment made by each APPO member state. As of March 2025, three member countries – Angola, Nigeria and Ghana – had contributed, reflecting the support from some of Africa's biggest oil and gas producers. At AOG 2025, Ibrahim is set to share insight into the role the institution will play in markets such as Angola and how improved financing can support regional fuel security. AOG is the largest oil and gas event in Angola. Taking place with the full support of the Ministry of Mineral Resources, Oil and Gas; the National Oil, Gas and Biofuels Agency; the Petroleum Derivatives Regulatory Institute; national oil company Sonangol; and the African Energy Chamber; the event is a platform to sign deals and advance Angola's oil and gas industry. To sponsor or participate as a delegate, please contact sales@ As sub-Saharan Africa's second largest oil producer, Angola strives to sustain oil production above one million barrels per day beyond 2027. In tandem, the country aims to bolster gas monetization, with its first non-associated gas project – led by the New Gas Consortium – coming online in late-2025 or early-2026. Through a multi-year strategy, improved fiscals and an upcoming Gas Master Plan, the country is incentivizing spending across the entire oil and gas value chain. The AEB will support these goals by offering project developers the requisite financing to accelerate exploration, production and project development. Operating as a development finance institution, the AEB will focus on Africa. The bank will have three classes of shareholders, with Class A featuring founding countries, APPO member states and Afreximbank; Class B consisting of other African countries, alongside their national oil companies; and Class C being reserved for individual and corporate investors outside of the continent. This structure offers access to a wide investment pool and reflects the drive by APPO and Afreximbank to support African oil and gas developments. AOG 2025 offers a strategic platform for project developers in Angola to gain insight into financing opportunities made possible through the AEB. Ibrahim's participation will not only provide a greater understanding of the role the bank can play in the country but foster dealmaking in Angola as companies seek new financing mechanisms to expand their portfolios. Distributed by APO Group on behalf of Energy Capital&Power.
Zawya
01-04-2025
- Business
- Zawya
Africa Energy Bank Gains Momentum with Capital Contributions from Nigeria, Angola and Ghana
In a significant development for Africa's energy sector, Nigeria, Angola and Ghana have fulfilled their capital commitments toward establishing the Africa Energy Bank (AEB). This milestone represents 44% of the minimum required funding from African Petroleum Producers Organization (APPO) members to initiate the bank's operations. Dr. Omar Farouk Ibrahim, Secretary General of APPO, announced this progress during the Congo Energy&Investment Forum last week. The AEB aims to finance oil and gas projects across the continent, addressing funding challenges posed by traditional Western financial institutions' reluctance to support fossil fuel initiatives due to environmental concerns. APPO has requested each of its 18 member states to contribute $83 million, targeting a total initial capitalization of $5 billion. Beyond Nigeria, Angola and Ghana, five additional member states – Algeria, Benin, the Republic of Congo, Equatorial Guinea and Ivory Coast – have pledged to make their payments, aligning with the bank's goal to commence operations in the first half of 2025. Nigeria remains sub-Saharan Africa's largest oil producer, offering significant opportunities in the oil and gas sector, including a 2025 bid round. The implementation of the Petroleum Industry Act has introduced regulatory reforms to enhance transparency and attract investment, driving major projects forward. Recent final investment decisions (FIDs) include TotalEnergies' $550 million Ubeta Gas Field Development and Shell's $5 billion Bonga North Project, yet additional financing is crucial to advancing Nigeria's gas agenda and unlocking its full potential in the energy transition. Angola, meanwhile, is actively diversifying its energy portfolio while advancing major deepwater developments, including TotalEnergies' $6 billion Kaminho Deepwater Project, Eni's Agogo Integrated West Hub and a limited public tender, with a long-term goal of increasing production to 2 million barrels per day. The country plans to make an FID on its first green hydrogen project by 2025 – a 600 MW development led by Sonangol in collaboration with international partners. Additionally, Angola is spearheading its first non-associated gas project, the New Gas Consortium, and undertaking a $12 billion expansion of the Angola LNG plant to enhance its gas monetization efforts. Ghana is strengthening its position as a leading oil and gas player with new commitments from Eni and Tullow Oil. In March, Eni and the Ghana National Petroleum Corporation signed an agreement to enhance offshore exploration, optimize existing assets and advance untapped reserves. This follows recent regulatory reforms aimed at improving fiscal terms, transparency and investment incentives. Tullow Oil also remains integral to Ghana's energy sector, with production from the Jubilee and TEN fields supporting economic growth and plans to launch a drilling program in May 2025 to bring new production online. Beyond hydrocarbons, Ghana is modernizing infrastructure, expanding energy access and diversifying into renewables to strengthen long-term energy security. Amid these developments, the establishment of the AEB is a strategic response to Africa's need for dedicated financial institutions that understand the continent's unique energy landscape. By providing tailored financing solutions, the Bank is poised to accelerate energy project development, enhance energy security and drive economic growth. As more countries contribute their capital shares, the bank is expected to play a pivotal role in unlocking investment, bridging financing gaps and ensuring sustainable energy expansion across Africa. With Nigeria, Angola and Ghana contributing their capital shares, the AEB is gaining momentum as a key financial institution for the continent's energy future. African Energy Week (AEW) 2025: Invest in African Energies – taking place from September 29 to October 3 in Cape Town – will serve as a vital platform to advance discussions on the AEB's role in mobilizing investment and bridging financing gaps. The conference will cover strategic topics including upstream oil and gas, downstream infrastructure, the energy transition and power industry developments. Notably, AEW 2025 will feature an energy finance stage dedicated to the latest updates from the AEB, investment trends and strategies to reduce barriers to capital access, ensuring that Africa's energy sector is well-positioned for sustainable growth. AEW: Invest in African Energies is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit for more information about this exciting event. Distributed by APO Group on behalf of African Energy Chamber.
Zawya
27-03-2025
- Business
- Zawya
Africa Energy Bank Gears Up for H1 2025 Launch
Ahead of its H1 2025 launch, the Africa Energy Bank – developed jointly by Afreximbank and the African Petroleum Producers Organization (APPO) – is positioning itself to tackle major challenges in financing, technology and market reliability to accelerate Africa's oil and gas sector development. Speaking at the Congo Energy&Investment Forum in Brazzaville, Dr. Omar Farouk Ibrahim, Secretary General of APPO, reaffirmed the launch timeframe and underscored the urgency of establishing the bank to address the continent's energy needs. "We should not rest and wait for other countries to develop our own projects,' he said, adding, "At APPO, we have noted three specific challenges for the African continent: finance, technology and reliable markets." With an initial capital of $5 billion, the bank has allocated $1.5 billion for APPO member countries. It will primarily finance oil and gas projects, engage in trading and manage risks. Countries such as Ghana, Nigeria and Angola have already expressed support for the bank's objectives. The Republic of Congo has acquired $83.33 million in shares, reinforcing its commitment to the bank's mission. Distributed by APO Group on behalf of Energy Capital&Power.
Al Jazeera
19-02-2025
- Business
- Al Jazeera
Can new Africa Energy Bank power a continent while protecting the planet?
A group of African countries is set to launch a bank to fund oil and gas projects amid growing reluctance by Western institutions to further invest in fossil fuels. The long-planned 'Africa Energy Bank' that is expected to take off soon was announced last June as a joint initiative by the African Export-Import Bank (Afreximbank) and the African Petroleum Producers' Organization (APPO) – a group of 18 oil-exporting nations. The bank aims to lift growth by boosting Africa's energy supply. Its founders consider it a lifeline in a continent rich with natural resources, but where millions of people still lack access to electricity. However, climate activists have questioned the logic of doubling down on fossil fuels. In addition, oil and gas projects built today have a high probability of becoming unusable 'stranded assets', leading to costly debt on countries' balance sheets in the future as the world transitions to low-carbon alternatives. To provide for the material power needs of Africans while also protecting the planet, experts say a balance is needed. Caught between a rock and a hard place Under the 2015 Paris Agreement, hundreds of countries pledged to hold global temperatures to below 2 degrees Celsius (3.6 degrees Fahrenheit) above pre-industrial levels. Since then, governments and companies – including in Africa – have faced increased pressure to reduce their reliance on fossil fuels. The World Bank stopped financing oil and gas extraction in 2019. In 2022, Shell suspended marine exploration activity off the coast of South Africa after a High Court ordered it to pause work due to successful legal challenges from environmental campaigners. At the time, Happy Khambule, a senior campaigner for Greenpeace Africa, said, 'We must do everything we can to undo the destructive colonial legacy of extractivism, until we live in a world where people and the planet come before the profits of toxic fossil fuel companies.' For his part, Omar Farouk Ibrahim, secretary-general of APPO, has said there is a 'need to strike the right balance between the imperatives of climate change mitigation and the need to avoid social upheaval that could result from difficult economic and financial conditions in Africa'. Indeed, Africa's energy needs are immense. The number of sub-Saharan Africans without access to electricity has risen in recent years. As population growth outpaced new energy supply in 2023, 600 million people (43 percent of the continent) were left in the dark, according to the International Energy Agency. While estimates vary, electricity supply would need to increase fivefold to support large-scale industrial activity and help lift the majority of Africans – one-third of whom live on less than $1.90 a day – out of poverty. On a per capita basis, Africa has the lowest level of modern energy usage in the world. At an economy-wide level, it also lags behind. Globally, manufacturing makes up 42.2 percent of total power consumption. In Africa, it's just 16.8 percent. APPO head Ibrahim says the Africa Energy Bank is the result of Western countries' 'abandon[ing] hydrocarbons' so that 'the leaders of the continent have no choice but to look within to raise the required funds to sustain and grow the [energy] industry'. The Africa Energy Bank will be headquartered in Abuja, Nigeria's capital. On February 11, Nigeria's Minister of State for Petroleum Resources Heineken Lokpobiri told reporters that 'the building is ready, and we are only putting finishing touches to it, by the end of this quarter [end of March], this bank will take off.' Countries involved in the Africa Energy Bank include Nigeria, Angola and Libya, among others. Planned projects are expected to range from offshore oil exploration to new gas-fired power plants. Each country has pledged $83m and to raise a total amount of $1.5bn. That will be complemented by $14bn from the Afreximbank, a trade credit organisation. Over the next five years, Lokpobiri said that the Africa Energy Bank is hoping to secure $120bn in assets. Additional funding will likely come from sovereign wealth funds, commodity traders and international banks interested in acquiring equity. Africa's context is 'different' Many African leaders recognise the need for rapid industrial development and balk at restrictions from Western financial backers, whose rules increasingly bar them from traditional energy projects. Arkebe Oqubay, a former adviser to Ethiopia's Prime Minister Abiy Ahmed, insists that 'Africa's context is totally different from elsewhere because its economic resources have not been fully developed. At the same time, it's made a minimal contribution to climate change.' Africa is responsible for just 4 percent of global carbon emissions and even less on a historical basis. It also suffers disproportionately from the effects of extreme weather events. 'The moral imperative to cut emissions is not as present in Africa,' said Oqubay. He told Al Jazeera that, '[these] are countries at a development stage where you cannot suddenly move into the green transition … You cannot just say funding is cut and they cannot commit to oil and gas'. The African Energy Chamber, an advocacy group, has also argued that Africa has a 'sovereign right' to develop its natural resources, which, according to the group, includes 125 billion barrels of oil and 620 trillion cubic feet of natural gas. 'Until [renewable energy] funding becomes more readily available, African countries are entitled to expand their oil and gas capabilities … and the international community does not have the right to say we cannot do this,' said Oqubay. 'But to be clear, fossil fuels are not the future,' he said. 'Huge' renewable energy potential Africa's energy shortages are a 'development constraint', said Fadhel Kaboub, an associate professor of economics at Denison University in the United States. Africa's subdued power sector limits the production of fertiliser, steel and cement – hallmarks of economic development. The continent's inability to industrialise has exacerbated global growth divergence. From 2014 to 2024, gross domestic product (GDP) per capita in sub-Saharan Africa dropped by more than 10 percent (from $1,936 to $1,700). Over the same period, global GDP per capita rose by 15 percent. 'To climb the development ladder, the continent needs more energy,' Kaboub said. 'But the best way forward isn't to double down on fossil fuels. And boosting oil and gas exports as an end, in itself, is what Afrexim is pushing for.' Instead, he believes that Africa should leverage its remaining fossil fuel infrastructure to build out its 'huge' renewable energy potential. Africa is endowed with solar, wind and geothermal resources, as well as the critical minerals needed for green technologies. According to the International Renewable Energy Agency, Africa's potential to generate renewable energy from existing technologies, accounting for current costs, is 1,000 times greater than the projected demand for electricity in 2040. 'Of course, there are constraints to realising Africa's renewable energy capacity. But cost is not one of them,' said Kaboub, referring to reports which state that most new wind and solar projects are cheaper to run than their fossil fuel counterparts. Instead, he contends that 'debt is the pressure point not to change tack'. Almost 60 percent of countries in sub-Saharan Africa are in debt distress, according to the World Bank. 'For oil producers on the continent, economic activity mainly consists of exporting fossil fuels to stay on top of debt repayments,' said Kaboub. He suggested that, by providing oil and gas for other countries' industrial processes, African governments are engaged in 'economic entrapment'. 'Industrial growth requires economies of scale [cost savings derived from high levels of production],' said Kaboub. 'Africa needs regional development plans where national resources are complemented and built out across countries … it doesn't need more siloed oil and gas projects.' In his view, development banks are failing to present a long-term economic vision for the continent. 'And the green industrial revolution, where renewable energies power domestic manufacturing, could be that strategy,' he said. 'Or we can continue to focus on raw material export activity and stay stuck in the resource trap.'
