Africa has officially launched its own financial institution dedicated to oil and gas projects, responding to the withdrawal of Western banks from energy investments due to climate commitments. The Africa Energy Bank (AEB) was established on October 31 during a meeting in Abuja, Nigeria, involving Afreximbank and the African Petroleum Producers’ Organization (APPO). This development comes after more than four years of planning and is approximately 20 months behind schedule.
Abuja was selected over six other countries, including Ghana, Algeria, South Africa, and Benin, to host the new bank. Helmy Ghazi has been appointed as the first president of the AEB; he previously served as the deputy CEO of HSBC Bank Egypt. The bank is governed by a board comprising members from public and private sectors as well as policy institutions. Its mandate encompasses the entire energy value chain, including exploration, production, transportation, refining, distribution, and power generation.
The AEB has an authorized capital of $5 billion, of which about $500 million has been secured, including a contribution of $222 million from Afreximbank and an additional Nigerian funding estimated between $100 million and $200 million. The bank aims to raise up to $10 billion during its initial operational phase and plans to finance at least three projects by 2027, focusing primarily on regional refineries and pipelines. Its objectives include reducing Africa’s reliance on imported petroleum products and boosting intra-African energy trade.
Reports indicate that Africa requires approximately $200 billion in energy investment, with about 600 million people lacking access to electricity. A study by the Carnegie Endowment highlighted that G20 countries and multilateral development banks provided around $35 billion annually in energy financing to Africa between 2012 and 2021. However, the continent faces significant financing gaps that existing funding sources have struggled to address.
While private investment is increasing in African energy, it is predominantly directed towards clean power rather than oil and gas. In 2025, climate technology startups raised approximately $1.2 billion, constituting 38% of all venture capital funding on the continent. Development lenders tended to support clean energy projects, with Kenya receiving a substantial proportion of startup funding, particularly for climate-related initiatives.
China remains a major player in Africa’s energy sector, offering essential capital through policy banks and commercial loans. Since 2000, Chinese institutions like the Export-Import Bank of China and the China Development Bank have injected $182 billion into African energy projects. The AEB is designed to give African governments greater control and access to capital compared to the traditional financing arrangements that have limited their influence over project development.
