As the Africa Energy Bank (AEB) prepares to officially launch operations, eight countries have collectively provided a significant financial buffer, contributing 44 per cent of the required minimum contributions for the bank.
The AEB, IS a $5 billion financial institution aimed at boosting energy infrastructure across Africa by mobilising capital to support energy infrastructure development across the continent.
Nigeria, Angola and Ghana at the last count have fulfilled their capital commitments to energize the bank operations representing 44 per cent of the required minimum contributions and laying the groundwork for its launch
However, Algeria, Benin, the Republic of Congo, Equatorial Guinea and Ivory Coast, are yet to fully commit to their additional pledges.
Nigeria, the host country for the bank’s headquarters in Abuja, has contributed $100 million, while Angola, Ghana, and other key member states have fulfilled their capital commitments, collectively accounting for nearly half of the initial capital base.
Recall that the Afreximbank has already raised $19 billion in total commitments, including $14 billion in exposure and an additional $5 billion as the bank’s initial capital, signaling robust backing from both public and private investors. This financial foundation is expected to enable the AEB to scale up investments to $120 billion in the future, accelerating Africa’s energy security and economic growth.
The delay notwithstanding, the African Petroleum Producers’ Organization (APPO) and the African Export-Import Bank (Afreximbank) have advanced plans to launch the bank’s operations.
In April this year, APPO hired consulting firm PWC as project management consultants for the $5 billion development finance institution, which will be headquartered in Abuja, Nigeria and is set to commence operations this year.
The bank will provide tailored financing solutions for African oil and gas projects, addressing long-standing funding gaps and enabling project developers to advance exploration, production and monetization initiatives.
The AEB will feature a three-tiered shareholder structure, including APPO member states, other African nations and their national oil companies, as well as individual and corporate investors from outside the continent.
The launch of the AEB comes amid a shift in African energy cooperation, with APPO, the Economic and Monetary Community of Central Africa and the Central Africa Business & Energy Forum signing a MoU in April 2025 to develop the Central African Pipeline System.
The system, spanning up to 11 countries, envisions thousands of kilometers of oil, gas and LPG pipelines and associated infrastructure aimed at improving regional energy access and security.
APPO has also established a strong partnership with the Organization of the Petroleum Exporting Countries (OPEC).
The collaboration between the two organizations aims to advance African oil and gas projects through shared expertise, coordinated efforts in market stabilization and investment opportunities.
This partnership demonstrates APPO’s commitment to engaging in collaborative action to address Africa’s energy needs as well as advancing sustainable development on the continent.
“Dr. Omar Farouk Ibrahim’s leadership in establishing the African Energy Bank represents a bold step toward a self-sustained African energy sector. His participation at AEW: Invest in African Energies 2025 will spotlight the future of energy financing on the continent and inspire confidence in Africa’s ability to fund its own growth,” states Tomás Gerbasio, VP of Commercial and Strategic Engagement, African Energy Chamber.
With major oil and gas projects underway in Africa – such as the cross-border Greater Tortue Ahmeyim LNG development, Mozambique LNG, Uganda’s Lake Albert development, Senegal’s Sangomar field development and others – APPO stands ready to support these initiatives by ensuring access to necessary funding.
As such, AEW: Invest in African Energies 2025 serves as the premier platform for stakeholders and policymakers to engage with international and domestic investors to make deals and form partnerships that align with the continent’s energy goals.
In the wake of this major milestone for energy financing on the continent, Dr. Omar Farouk Ibrahim, Secretary General, APPO will participate as a speaker at this year’s African Energy Week: Invest in African Energies 2025 – taking place from September 29 to October 3 in Cape Town.
