Taking over from Cameroon, Congo will assume the rotating presidency of the African Petroleum Producers Organization (APPO) in 2025. The Congolese presidency is especially expected on the thorny issue of the African Energy Bank (AEB) and the choice of its operating model.
Congolese Minister of Hydrocarbons, Bruno Jean Richard Itoua, was appointed APPO President for 2025 by his peers on October 28 in Yaoundé, Cameroon, on the sidelines of the 46th ordinary session of the organization’s Council of Ministers. He will be seconded by his Ivorian counterpart, Minister of Mines, Petroleum and Energy, Mamadou Sangafowa Coulibaly. In addition, the Council of Ministers also appointed new leaders of the Executive Council for 2025.
Among Appo’s hot projects is the acceleration of the deployment of the AEB, headquartered in Nigeria. With a seed capital of over 3 trillion CFA francs, the pan-African institution is expected to address the lack of foreign investment in fossil fuels on the continent by financing oil and gas projects. The new AEB is seen as the cornerstone of energy project financing across Africa, focused on innovation, sustainability and economic growth in member states.
The process of establishing the AEB began in 2022 with an agreement between Appo and the African Export-Import Bank (Afreximbank) based in Cairo, Egypt. The latter then committed to providing a significant portion of the capital of the AEB, while Nigeria approved a contribution of $100 million (about 60 billion CFA francs) to the institution’s capital. The major challenge for APPO is to convince member countries to pay their contribution to the share capital on time, which is more than the required $83.33 million.
The idea of the AEB project was widely supported by Congo, in addition to hosting the headquarters of APPO, which must now contribute to the mobilization of resources. “The countries must contribute, but other partners will also contribute, starting with Afreximbank. The next step is the finalization of the start-up process of this bank, in particular by holding the general assembly which will set up the Board of Directors and appoint the CEO ,” said Minister Bruno Jean Richard Itoua last August.
In addition to the AEB project, the Congolese presidency will have to work towards consensus around the control of the oil market. The members of the APPO should be able to agree on the level of production and the control of crude oil prices. A harmonization of policies related to the energy transition is also desired. The presence of many leaders at the opening of the 46th session of the APPO Council of Ministers, in particular the Cameroonian Prime Minister, Joseph Dion Ngute, proves the essential place occupied by the Hydrocarbons sector in African economies and in the development process of the continent.
