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Africa’s Petro States Create A Funding Solution

The African Petroleum Producers’ Organisation (APPO) is putting the finishing touches on plans to establish the Africa Energy Bank. The bank is being set up to finance oil and gas operations in Africa in order to curb external financing which typically has its limitations. APPO Secretary Dr. Omar Farouk Ibrahim says, “This is going to focus essentially on funding oil and gas projects on the African continent because the funds have dried.” He also noted that the World Bank, and other international financing institutions that typically finance oil and gas projects in Africa are shutting down their financing channels in addition to having “stringent conditions, which doesn’t make a lot of sense” compared to 20 or 30 years ago. In light of the net zero campaign, a number of large banks, including HSBC, Standard Chartered, and Standard Bank, declared that they are examining the loans they make for oil and gas projects.