The selection process of the African country that will host the headquarters of the future African Energy Bank is announced to be tight (Africa Energy Bank). Nigeria, Ghana, South Africa, Egypt, Algeria, Benin and Ivory Coast are currently in the running. This was reported by the information site “Afrique 360”, specifying that the decision-makers of the future institution have until the end of the month to select the winning country, with a view to finalizing the process of creating the Africa Energy Bank, which should come into operation by June. Created on the initiative of the Producers’ Organisation African oil (Appo), the new African bank will be equipped with a budget of 5 billion dollars, with the idea of allowing the countries of the continent to free themselves from Western investors. The headquarters of the African Energy Bank will give the host country a special status: the credit institution is called upon to play a fundamental role in the financing of energy projects on the continent, guaranteeing the designated country greater influence on the regional and international energy market as well as privileged access to large energy investments. Among the criteria set out by APPO to be eligible, the country must have adequate premises and have already subscribed to the bank’s share capital.
Five countries out of the seven candidates are considered most favoured. In the lead is Nigeria, the continent’s main oil producer and second gas producer which, however, suffers from a low electrification rate. The president’s government Bola Tinubu It is counting on the welcome of this institution to further strengthen the financing of its electricity projects and intends to play all its cards to maintain an important role within the regional community, also leveraging its rotating presidency of the Economic Community of the Countries of the West Africa (ECOWAS/CEDEAO). The battle promises to be no holds barred for Algeria, the continent’s fourth largest oil producer and largest gas producer, but Egypt also seems determined to play a decisive role given its growing gas production with ambitions to become an energy hub for Africa, Asia and Europe.
As regards the South Africa, committed to overtaking Nigeria as the continent’s leading industrial power, the country has been facing serious interruptions in the electricity supply system for years, with persistent blackouts due to the lack of maintenance of the network and the heavy debt of the state energy company Eskom. However, Pretoria appears determined to reduce its dependence on fossil fuels and to focus on renewable energy, an element that could be evaluated positively and make up for the disadvantage due to its not being an oil producer. According to analysts, the candidacy of the Ghana, a young oil and gas producer but which in 2020 snatched from Egypt the seat of the African Continental Free Trade Area (AfCfta), the African Union project to create a single market in Africa. Finally, Benin – which hosted the Appo ministerial meeting in November – and Ivory Coast (a small oil producer), considered the outsiders of the race, are added to the list of favourites. The seat allocation process will be carried out by consensus on the basis of the individual elements presented by the various candidate countries.
Source:agenzianova.com