Ministers of Energy from different African Union (AU) member countries have agreed to establish a continental oil fund that will boost the performance of the sector in Africa.
In a meeting they held in Addis Ababa, Ethiopia recently, the officials responsible for hydrocarbons, also crafted key documents to help develop the energy sector.
Yussuf Uwamahoro, the Coordinator of the Energy Sector in the ministry, yesterday said that once established, the fund will play an instrumental role in controlling price fluctuation of oil products that has rocked the continent.
Rwanda’s Ambassador to Ethiopia and the AU Permanent Representative, Prof. Joseph Nsengimana and Doris Mwirigi, a Ministry of Infrastructure (MINFRA) official, represented the country at the three-day event.
The fund, to be managed by the African Development Bank (AfDB), will serve as a solidarity fund for all African member states both - oil producers and non producers.
“We are set to benefit because price fluctuations will be stabilized by the fund. Once the prices are stable in all countries, this benefits us as well,” Uwamahoro said.
The African Petroleum Fund will also enable resources mobilized from member states and donors provide assistance to low income oil importing countries affected by increases in petroleum prices.
The conference also mandated the African Union Commission to carry out all the necessary measures to sensitize the AU member states on the importance of the fund, as well as implementing a resource mobilization strategy that will enable the fund become operational.