The future of the Africa Energy Bank hangs in the balance after the African Export-Import Bank warned that the African Petroleum Producers Organisation’s continued delay in transferring equity subscription funds could indefinitely stall the project.
In a letter to APPO Secretary-General Dr. Omar Farouk Ibrahim, Afreximbank stated that APPO’s decision to release funds only after setting a launch date, selecting a headquarters, and appointing a president could derail the bank’s creation.
In June, Farouk rejected Afreximbank’s request to move the equity subscription funds into the AEB Equity Investment Account, insisting, “We cannot unilaterally transfer what is in an escrow account we do not fully control to Afreximbank.”
He added, “Once we agree on a launch date, secure the headquarters, and hire a president, APPO and its member states will transfer all the funds in their accounts to AEB’s account.”
Afreximbank disagreed, warning that this stance “might have been a mistake” because it would prevent the formal establishment of the bank.
In a letter signed by Executive Vice President of the Global Trade Bank and AEB project lead, Mr. Haytham Elmaayergi, Afreximbank explained, “This position means we cannot proceed with AEB’s formal establishment.”
The bank stressed that depositing equity subscription funds into the AEB Equity Investment Account as payment toward share subscription is a non-negotiable requirement for setting up AEB.
Without those funds, Afreximbank said it cannot confirm who the shareholders are, allocate shares, or determine whether there are even eligible shareholders.
The bank noted that without shareholder confirmation, it cannot hold the first General Meeting.
It added that without this meeting, the board cannot be elected, a president cannot be appointed, and, ultimately, the Africa Energy Bank cannot be created.
To protect the interests of all stakeholders, Afreximbank urged APPO to comply with the AEB Establishment Agreement and Charter to speed up the launch.
The bank cited Article 45.1(a) of the charter, which states, “At least two eligible subscribers must subscribe and pay for shares worth $1.25 billion in line with the charter’s provisions.”
Afreximbank emphasized that this payment is a necessary step before holding the first General Meeting, electing Directors, and appointing both the President and External Auditors.
It warned that “Delays in transferring investor subscription funds, despite repeated requests, are now damaging the reputation of all stakeholders involved in this landmark project.”
To ease the process, Afreximbank noted that its board amended approvals in March 2025 to allow the bank to invest up to $750 million in nominal equity ($300 million paid-in) under a matching arrangement with APPO member states.
Afreximbank concluded that the only viable solution is to immediately deposit investor subscriptions into the designated AEB Equity Investment Account to comply with the charter and kick-start establishment activities without further delay.
source:punchng.com
African Energy Council