(Business in Cameroon) – From October 28 to November 1, 2024, Yaoundé is hosting the African Petroleum Producers’ Organization (APPO) meetings, bringing together African oil producers to discuss major energy issues. These meetings include the 19th regular session of the Executive Council and the 46th regular session of the Council of Ministers. One of the main agenda points is the development of the African Energy Bank (AEB), an initiative launched jointly with the African Export-Import Bank (Afreximbank).
AEB is designed to address the mounting financial challenges in the oil and gas industry, which is increasingly strained by the global energy transition and lingering effects of the COVID-19 pandemic. APPO and Afreximbank hope the AEB will help fill the funding gaps created as traditional backers become hesitant to finance energy projects due to climate concerns.
For Cameroon, this new bank represents a significant opportunity to attract fresh investment for its oil sector. Cameroon has abundant oil and gas resources but faces financial obstacles in modernizing and expanding its energy infrastructure. Improved access to funding could accelerate the construction of pipelines, refineries, and other crucial facilities, promoting sustainable economic growth and generating thousands of new jobs. The AEB initiative could also help address environmental concerns by encouraging the adoption of cleaner technology, aligning Cameroon and other African countries with global energy transition goals. Cameroon would then be able to preserve its natural resources better and position itself as a responsible player in the global energy arena.
Discussions around the AEB began in May 2022, with a memorandum of understanding signed in Luanda, Angola. A working group was created to draft the institution’s foundational documents, and, after careful review, Abuja, Nigeria, was chosen as the AEB headquarters during APPO’s 45th Council of Ministers session. In Cairo on June 4, 2024, the agreement and the charter for the bank were officially signed, marking a key milestone. As of October 27, 45% of the projected $5 billion in capital has been raised, APPO Secretary-General Omar Farouk Ibrahim noted in a press briefing. Barring last-minute changes, the AEB’s operational start date is expected to be confirmed following the Council of Ministers session on November 1.
Founded on January 27, 1987, in Lagos, Nigeria, APPO started as an association of eight member countries and has grown into an intergovernmental organization with 18 member states, including Cameroon, Nigeria, and South Africa. APPO provides a cooperative platform for Africa’s oil and gas-producing countries, supporting knowledge exchange and the development of shared energy policies. Currently, APPO is chaired by Adolphe Moudiki, head of the National Hydrocarbons Corporation (SNH) in Cameroon.
Cameroon’s oil industry remains a crucial source of revenue. Between January and April 2024, Cameroon earned CFA174.2 billion from oil, according to SNH. In this period, the country produced 12.7 million barrels of oil equivalent, including 922.3 million cubic meters of natural gas and 7.5 million barrels of crude oil. Cameroon aims to reach CFA801.6 billion in oil revenues by the end of 2024.
