Photo: Solargis / Wikimedia Commons, CC BY 4.0
Africa has formally created a new energy lender with $5 billion in authorised capital, seeking greater control over how the continent funds oil, gas and energy infrastructure.
Bank established in Abuja
The Africa Energy Bank was formally established at its inaugural general meeting in Abuja on 31 October, through a partnership between the African Export-Import Bank, Afreximbank, and the African Petroleum Producers’ Organisation, APPO.
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The institution is headquartered in Nigeria and will support projects across the energy chain, from exploration and production to pipelines, processing, refining and fuel distribution. Its stated aims include expanding productive capacity, cutting reliance on imported petroleum products and increasing trade in energy goods between African countries.
Egyptian banker Helmy Ghazi was appointed as the bank’s first president, while Côte d’Ivoire’s mines, petroleum and energy minister, Mamadou Sangafowa-Coulibaly, was elected chair of its general assembly for one year.
A response to the financing squeeze
The launch follows years in which many Western banks, insurers and development financiers have scaled back backing for fossil-fuel projects as climate policies tighten. African producers argue that the withdrawal has created a severe funding gap even as oil and gas remain central to electricity generation, transport, cooking fuel and industrialisation across much of the continent.
APPO and Afreximbank say Africa’s energy investment needs stand at about $200 billion. The new lender is intended to mobilise African capital and attract co-financiers for projects that may struggle to secure conventional backing.
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The $5 billion figure is authorised capital, rather than cash immediately available for loans. APPO secretary-general Farid Ghezali told S&P Global in October that the bank expected to begin with around $500 million available to deploy, with investment decisions targeted for 2027.
What the bank could fund
Early priorities are expected to include cross-border oil and gas infrastructure, domestic refining, clean-cooking projects and power-related investments. APPO has also indicated it wants development of export infrastructure to be balanced with local supply, a critical issue for countries that produce hydrocarbons while households and businesses still face high energy costs or unreliable electricity.
The bank’s mandate goes beyond upstream drilling. Backing for refineries, storage, transport networks and regional pipelines could help African states retain more value from resources that have too often been exported in raw form and re-imported as costly finished products.
Why it matters
For Black communities across Africa and the diaspora, the development is about more than oil and gas. It is a test of whether African institutions can build financing systems that serve African industrial growth, jobs and energy access rather than depending primarily on external lenders whose priorities may differ from those of local populations.
The bank also enters a difficult debate. Climate campaigners warn that long-lived fossil-fuel assets can expose countries to environmental harm and future market risk. Its success will therefore depend on whether it funds commercially sound projects that improve energy access, support cleaner household energy and deliver public benefit alongside returns.
Related DGBN reporting includes Africa Energy Bank launches in Abuja with $5bn mandate for continent’s energy projects.
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The institution is scheduled to begin operations on 4 January 2027, according to reports from its inaugural meeting.