The African Export-Import Bank (Afreximbank) and the African Petroleum Producers’ Organization (APPO) have formally established the Africa Energy Bank, a US $5Bn institution designed to finance energy investments and strengthen the continent’s capacity to fund its own oil and gas industry.
The bank’s establishment was formalised during a meeting in Abuja, Nigeria, bringing together representatives of the two founding organisations and other stakeholders involved in the initiative. The institution is expected to provide an alternative source of capital for African energy projects at a time when access to international financing for oil and gas developments remains increasingly constrained.
With an authorised capital of US $5Bn, the Africa Energy Bank is intended to mobilise investment for projects across the petroleum value chain. Its financing scope is expected to cover oil and gas exploration, production, transportation, storage, refining and distribution, as well as associated energy infrastructure.
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Role
The initiative seeks to address a longstanding financing challenge in Africa’s energy sector, where limited access to affordable capital has slowed the development of domestic resources and infrastructure. By establishing a dedicated African financing institution, Afreximbank and APPO aim to increase the participation of local investors and financial institutions in projects that have traditionally depended heavily on foreign funding.
Egyptian banker Helmy Ghazi was appointed the bank’s first president during its inaugural general meeting in Abuja. The meeting also established the institution’s initial governance structure, including its first Board of Directors. The creation of the bank follows several years of discussions between Afreximbank and APPO, which signed the institution’s Establishment Agreement and Charter in Cairo in June 2024. The two organisations subsequently advanced preparations to establish the bank as a specialised financing platform for Africa’s energy industry.
Beyond supporting petroleum developments, the institution is expected to contribute to improving energy security by expanding domestic production, strengthening refining capacity and supporting infrastructure needed to facilitate regional energy trade. For African oil-producing countries, the bank could provide an additional financing channel for developing hydrocarbon resources and reducing reliance on imported refined petroleum products. It also comes as governments seek to attract investment into energy infrastructure while balancing economic development priorities with changing global energy financing conditions.
The $5 billion capital target represents the institution’s authorised capital and should not be interpreted as funds already disbursed or immediately available for lending. Its ability to finance projects will depend on capital mobilisation, operational arrangements and the development of its lending portfolio.
