The African Petroleum Producers’ Organisation (APPO) is finalising plans to set up the Africa Energy Bank to reduce overseas financing.

African nations, which are members of the Petroleum Producers’ Organisation, will collaborate with the African Export-Import Bank to launch an energy bank by the year-end, Pulse Nigeria news website reported, citing APPO general secretary Dr. Omar Farouk Ibrahim.

The process of creating the bank, and cooperation between APPO and Afreximbank, has reached an advanced level, he said at the recently-held Nigeria International Energy Summit.

Decision on the location of the headquarters and a launch date will be made soon.

“This is going to focus essentially on funding oil and gas projects on the African continent because the funds have dried,” Ibrahim said.

APPO expects to attract investments from countries with substantial stakes in oil and gas development, such as Saudi Arabia, the United Arab Emirates, Qatar and Kuwait, the report noted.

(Editing by Seban Scaria