Ghana plans to allocate approximately $83.4mn by March 31 as its initial subscription capital to host the proposed Africa Energy Bank (AEB).
The AEB, a development financial institution established jointly by the African Petroleum Producers Organization (APPO) and Afreximbank to address funding challenges in the oil and gas sector, is due to begin operations in June.
Facing fiscal constraints, Ghana’s government has tasked the national petroleum corporation (GNPC) to use earnings from its subsidiary, GNPC Explorco, to cover the country’s equity in the AEB. To bolster the funding, the West African country also intends to tap into the Ghana Heritage Fund.
The AEB aims to provide crucial financial support for the development of African Regional Energy Infrastructure. The initiative aligns with a long-term strategy to address challenges arising from the global shift towards clean energy, ensuring that Africa does not face stranded hydrocarbon resources. AEB will play a vital role in funding oil-producing companies focused on the continent.
As a member of APPO since November 4, 2022, Ghana stands to gain substantial benefits from hosting the AEB, the B&FT writes. Leveraging its membership, the gold- and oil-rich country aims to obtain funding support for exploration and production operations, upstream oil and gas infrastructure projects, and logistics support for pipelines.
Overall, Ghana’s involvement with the AEB is poised to enhance its economic prospects and contribute to the sustainable development of the energy sector.
Source: Daily Mail GH
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