A new financial institution, known as the African Extractive Minerals Development Bank (AEMBank), is being established to support Nigeria’s mining sector. This bank aims to enhance and streamline the entire mining value chain effectively. Recently, the African Minerals Strategy Group (AMSG) has partnered with AEMBank, comprising 16 African nations focused on promoting the mineral sector’s growth within the continent.

AEMBank is formed under public-private partnership (PPP) principles, seeking to discard traditional mining practices. Instead, it will foster a robust value chain centred on value addition, beneficiation, and industrialisation. With the rising demand for critical materials needed for renewable energy, Africa’s potential in this sector is becoming increasingly significant.

Key goals of AEMBank include job creation, enhancing indigenous empowerment, and increasing sovereign revenues through effective funding. The bank aims to help nations leverage their mineral reserves to strengthen their currencies and improve tradeability. Institutional investors and private stakeholders have expressed interest in partnering with this initiative.

The establishment of AEMBank is a significant development for the Nigerian and African mining sectors, which have been historically underfunded and overlooked. With the global energy transition towards renewables, the demand for critical materials sourced from African mines is rising. This bank intends to provide focused financial support to stimulate growth and innovation in the extractive industry, addressing systemic funding challenges and creating a comprehensive value chain.

AEMBank is expected to revolutionise the mining sector in Nigeria and beyond by providing necessary funding and support. By fostering value addition and industrialisation while enhancing local economies, AEMBank aims to meet the challenges of the global transition to renewable energy effectively. Its formation signifies a crucial step towards optimising Africa’s mineral wealth and ensuring the benefits reach its people.

Original Source: businessday.ng

The post AEMBank: A New Era for Nigeria’s Mining Sector Funding first appeared on Nigerian Mining News.