Afreximbank, APPO launch $5bn Africa Energy Bank in Abuja

Afreximbank and the African Petroleum Producers’ Organisation (APPO) have formally established the Africa Energy Bank (AEB), with headquarters in Abuja and $5 billion in authorised capital. The launch was announced at the bank’s inaugural general meeting in Abuja.

The new institution is meant to close Africa’s energy financing gap by funding oil, gas and wider energy infrastructure. It will operate as an independent, supranational pan-African financial institution, drawing funding from governments, national oil companies, financial institutions and private investors.

Why the bank is being created

African countries are finding it harder to access international financing for energy projects, especially fossil fuel developments. Traditional lenders are increasingly withdrawing from fossil fuel projects as global financial institutions shift towards cleaner energy sources.

Afreximbank said Africa needs an estimated $200 billion in energy investments to meet its development needs. It said substantial investment in electricity generation, transmission and other energy infrastructure is needed to accelerate industrialisation and unlock opportunities from emerging technologies, including artificial intelligence.

“The creation of the Africa Energy Bank reaffirms African governments’ determination to secure their own energy future,” Afreximbank stated.

What the bank will finance

The AEB will mobilise capital for critical projects across the continent. Its mandate covers exploration, production, transportation, processing, refining and distribution of energy resources.

The bank is also expected to strengthen Africa’s productive capacity, reduce dependence on imported petroleum products and encourage greater trade among African countries. It will promote increased African ownership and participation in the energy industry.

Beyond conventional energy projects, the institution is expected to support Africa’s transition to a more sustainable energy system without undermining economic growth.

Leadership and Nigeria’s role

The inaugural general meeting appointed Helmy Ghazi as the Africa Energy Bank’s first president. It also approved the establishment of the institution’s inaugural Board of Directors. The board will include representatives from the public and private sectors alongside leading policy institutions across Africa.

Nigeria’s selection as host strengthens its position as a centre for energy investment and financing in Africa. For Nigeria, the bank could provide additional financing for refinery expansion, gas infrastructure, petroleum transportation and other strategic energy projects. It could also support efforts to reduce fuel import dependence and improve domestic energy security.

Earlier, Ahmed Farouk, chief executive officer of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), said the Africa Energy Bank’s operations would soon begin in Nigeria. He spoke at the opening of the 18th edition of the Oil Trading and Logistics (OTL) conference in Lagos, where he said plans were in place to establish a continental bank to provide funding to fast-track Africa’s energy supply infrastructure.

The bank’s long-term impact will depend on its ability to mobilise capital and turn its financing mandate into viable projects across Africa.