Can you provide an update on APPO's activities over the past 12 months?

APPO has made significant progress in addressing the three imminent challenges that the global energy transition poses to the African oil and gas industry. These are the challenges of funding oil and gas projects, mastering oil and gas technology and expertise, and creating energy markets within Africa. Traditionally, over the last 70 to 100 years that Africa has been producing oil and gas, we have relied heavily on foreign financing, technology and markets. But the energy transition taught us that those on whom we have depended for decades can dump us anytime. 

As a result, APPO decided to look within the continent; we decided to look within to raise the funds required to pursue our energy projects, and we partnered with Afreximbank to start the Africa Energy Bank (AEB). The Establishment Agreement and the Charter of the Bank were finalized and signed by the founding institutions, Afreximbank and APPO in Cairo on 3 June 2024, the required number of Member Countries have signed and ratified the Agreement to make it a Treaty, a decision on the Headquarters of the Bank has been made, and it is Abuja, Nigeria, and we have raised funds to start the Bank. Nigeria is working to have the building ready before the end of Q1 2025. Thereafter we shall announce a date for the launch of the Bank. 

The AEB welcomes investors from across the world. It is not limited to African investors. But we do not welcome investors who do not share our vision that oil and gas have key roles to play in the provision of energy to the teeming population of the world, especially Africa. On technology, we have come to the conclusion that we need to pool resources together as African oil and gas producers to create centers of excellence in the various sectors of the industry across the continent. The inherited practice where each African country wants to excel in all the sectors of the industry has failed us. Each country may have juniors and middle level institutions. But the world class institutions shall be collective or regional. Towards this end, we have had meetings and workshops with various CEOs of APPO NOCs, Directors of R&D, Innovation as well as the Directors of Oil and Gas Training Institutions of APPO Member Countries. Very soon, we shall announce the first batch of our regional centers of excellence. 

What are the long-term ambitions for the Africa Energy Bank?

The ambition is to create a robust financial institution capable of mobilizing significant funds for African energy projects. In banking, $5 billion can be leveraged up to 17 times, meaning that with a strong initial capital base, the bank can facilitate significant investments. The key is establishing credibility and demonstrating commitment, as investors are more likely to contribute when they see a viable and well-structured institution.

Has there been a shift in global energy investment trends?

In the past, strict environmental policies from Western banks restricted funding for oil and gas projects in Africa. However, recent global developments, such as BP doubling down on oil and gas and the rollback of specific net-zero commitments by US companies, indicate a shift in perspective. The energy transition narrative has slowed down, partly due to economic and political factors in Western countries. However, we at APPO are not relaxing our efforts because political dynamics can change quickly, and the momentum for energy transition may rise again. We aim to maintain control over Africa's energy resources and financing, ensuring we are prepared for global shifts. 

The first Trump administration slowed the global energy transition, preventing a rapid shift away from fossil fuels. If he had not been elected in 2016, the world might have already reached a point of no return in the transition. His administration's stance allowed for a reassessment of energy policies. Leadership changes heavily influence global energy politics, and Africa must be prepared for these shifts by securing its own energy infrastructure and financing mechanisms.

Can you highlight some key APPO member countries and their contributions to the industry?

With new discoveries, Africa's oil and gas industry is growing across all regions. However, challenges related to resource control remain widespread. To address this, APPO is working on establishing regional Centers of Excellence in oil and gas technologies. Instead of every country attempting to develop expertise in all areas—upstream, midstream, and downstream—we are looking at a model where specific countries, by virtue of their advancement in particular sectors of the industry, will be designated as centers of excellence in those sectors. With time, we can have many centers of excellence in the same sector. 

What is APPO's strategy for integrating African energy markets?

A key initiative is establishing cross border pipelines across the subregions and across the continent. As I mentioned, we work to promote the Central African Pipeline System. We also work to promote the Trans Saharan Gas Pipeline, and the West Africa Gas Pipeline. Our target is to link Northern Africa with Sub-Saharan Africa by pipelines. By connecting regional infrastructure, we aim to create a fully integrated African energy market. Currently, most pipelines in Africa are designed for exports, taking resources out of Africa. By developing intra-African energy infrastructure, we can reduce costs, improve energy access, and encourage local refining and petrochemical industries.

What final message would you like to share?

APPO has made significant strides in developing innovative solutions for Africa's energy sector. We focus on looking within Africa for financing, technology, and markets. We are prioritizing infrastructure projects that will move energy from areas of surplus to areas of need. By integrating regional energy markets and establishing specialized Centers of Excellence, we aim to create a sustainable and self-reliant energy industry for Africa. Our long-term goal is to move beyond being a resource-exporting continent to becoming a major player in global energy markets.