Africa has formally established a $5 billion energy bank in Abuja to finance oil and gas projects across the continent, as traditional international lenders reduce their exposure to fossil fuel investments.
The Africa Energy Bank was set up by the African Export-Import Bank (Afreximbank) and the African Petroleum Producers’ Organisation (APPO) to address funding shortages affecting the continent’s energy industry.
At its inaugural general meeting in Abuja, the institution appointed Helmy Ghazi as its first president and constituted its inaugural board of directors. According to Brandspur Banking News Desk, the bank is expected to support projects across the energy value chain, from oil and gas exploration to refining and distribution.
The establishment comes amid concerns over the difficulty African energy companies face in securing funding from conventional international financial institutions, particularly for fossil fuel developments.
Despite the global shift towards cleaner energy sources, oil and gas remain important to many African economies, supporting electricity generation, industrial activities, government revenue and foreign exchange earnings.
The bank’s authorised capital stands at $5 billion, while Africa’s estimated energy investment requirements are put at $200 billion. This gap highlights the scale of financing needed to develop energy infrastructure and expand production across the continent.
Its proposed activities cover exploration and production, refining facilities and distribution networks. These investments could support efforts to strengthen domestic energy supply and reduce dependence on imported petroleum products in countries that lack sufficient refining capacity.
The project had been under consideration for several years. In February 2025, Reuters reported that the institution was targeting a launch around the middle of that year, while South Africa had expressed interest in joining despite not being a member of APPO.
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Earlier reports also indicated that the bank was targeting an asset base of $120 billion.
However, the $5 billion authorised capital and the proposed $120 billion asset target are different financial measures. The institution’s ability to mobilise funding and attract investors will be important in determining how much support it can provide to African energy projects.
With its headquarters in Abuja and its founding institutions now having formally established it, the Africa Energy Bank is positioned to become a dedicated financing channel for energy development across the continent.
