The African Export-Import Bank (Afreximbank) and the African Petroleum Producers’ Organization (APPO) have launched the Africa Energy Bank (AEB) in Abuja, Nigeria, with an authorized capital of $5 billion dedicated to financing oil and gas projects across the continent. The announcement came during the bank’s inaugural general meeting on October 31.
The AEB aims to address a significant financing gap as traditional lenders reduce support for fossil fuel projects, despite the continued importance of oil and gas to Africa’s energy landscape. The investment needs for the continent’s energy sector are estimated at around $200 billion. The bank plans to fund projects across various stages, including exploration, production, transportation, processing, refining, and distribution. Its overarching goal is to enhance productive capacity, decrease dependence on imported petroleum, and foster energy trade within Africa.
Afreximbank and APPO emphasized in a joint statement that the establishment of the AEB reflects the commitment of African governments to secure their energy futures. The bank’s mission includes promoting local participation in the energy sector to ensure that Africa’s energy future is shaped by its own people. Additionally, the two organizations highlighted the necessity of investing in power generation and transmission to facilitate industrial growth and support emerging technologies, such as artificial intelligence.
Operating as an independent, supranational financial institution, the AEB will seek investment from various stakeholders, including government bodies, national oil companies, financial institutions, and private investors. The bank is also committed to what it describes as a just energy transition for African nations.
During its first general assembly, the AEB appointed Helmy Ghazi as its inaugural president and established its initial board of directors, which comprises representatives from both public and private sectors as well as leading policy institutions throughout Africa.
