African lenders launch $5B energy bank

The new bank aims to bridge a ​financing gap as many major Western lenders retreat from financing fossil fuel projects. African lenders launched a $5 billion energy bank focused on oil and gas projects, as the continent tries to break its costly dependence on fuel imports. African countries have been hit hard by surging global energy prices this year, which have strained public coffers and prompted several to announce plans to develop new oil and gas fields or build domestic refineries. But the planned wave of new projects comes as debt costs — and infrastructure spending needs — are on the rise. The continent requires an estimated $200 billion annually in energy investment, according to the African Export-Import Bank and the African Petroleum Producers’ Organisation. The new bank aims to bridge a ​financing gap as many major Western lenders retreat from financing fossil fuel projects, despite oil and gas remaining central to ​the continent’s energy systems. It will support projects across the energy value chain, including exploration ​and production, as well as ​refining ⁠and distribution. The “Africa Energy Bank reaffirms African governments’ determination to secure their own ene