(Ecofin Agency) - Two years after the signing of the founding protocol, the African Energy Bank officially opened its doors on June 4. This supranational bank will focus on financing oil and gas projects in Africa, with a view to bridging the financing gap in these sectors and the continent's energy deficit.

The African Energy Bank (AEB) was created on Tuesday June 4, 2024. The founding documents and charter were signed by Afreximbank and the African Petroleum Producers Organization (APPO), its two founding institutions.

Structured as a pan-African energy development bank, AEB has an initial capital of $5 billion. It will focus on financing African oil and gas projects, without excluding renewable energy projects.

The operational launch is slated for July, pending the signatures and ratifications from two member countries besides the founding institutions. The bank aims to welcome investors who align with its mission and vision.

The AEB emerged to tackle the financing crisis in Africa's oil and gas industry, triggered by the withdrawal of foreign financiers and international investors citing global energy transition. It aims to harness all available energy forms on the continent to bridge the energy gap.

"This moment marks a significant milestone in our continent’s journey towards energy independence and sustainable development. By harnessing our collective resources and expertise, we are paving the way for a brighter, more prosperous future for all Africans,” said Tarek El Molla, a member of APPO's ministerial council and Egypt's Minister of Petroleum and Mineral Resources.

The establishment documents signing comes two years after the creation protocol was concluded, initially conceptualized and incubated in Egypt in December 2020. Africa, hosting the largest proportion of the global population without access to energy, could potentially bridge this gap with its vast reserves of crude oil and natural gas.