The African Export-Import Bank (Afreximbank) and the African Petroleum Producers’ Organisation (APPO) have launched the Africa Energy Bank (AEB) with an authorised capital of $5 billion, seeking to bridge the continent’s energy financing gap as traditional lenders withdraw funding from fossil fuels.
The establishment of the bank was formally announced at its inaugural general meeting held in Abuja on October 31, 2026, reaffirming African governments’ determination to secure the continent’s energy future through locally driven financing.
The bank is being established as Africa’s energy investment needs are estimated at $200 billion, while traditional providers of short- and long-term financing are reducing their exposure to fossil fuels, despite the continued importance of oil and gas to the continent’s energy systems.
The AEB aims to address this financing shortfall by mobilising capital for energy projects across Africa while supporting a just energy transition that reflects the continent’s development priorities.
With an authorised capital of $5 billion, the bank will finance projects across the energy value chain, including exploration and production, transportation, processing, refining and distribution.
The investments are expected to strengthen Africa’s productive capacity, reduce dependence on imported petroleum products and promote intra-African trade in energy goods.
The bank’s mandate also seeks to increase African participation in the continent’s energy sector, ensuring that the development and financing of its energy resources are increasingly shaped by African governments, institutions and investors.
To achieve these objectives, the AEB will operate as an independent, supranational pan-African financial institution, seeking investments from governments, national oil companies, financial institutions and private investors.
The initiative comes amid growing recognition that reliable and affordable energy supplies are essential to accelerating industrial growth and exploiting opportunities from emerging technologies, particularly artificial intelligence, which will require significant investments in energy generation and transmission.
Resolutions adopted at the bank’s first general assembly included the appointment of Helmy Ghazi as its inaugural president and the formation of its first Board of Directors.
The board comprises members drawn from the public and private sectors, alongside leading policy institutions from across the continent.
The establishment of the bank marks a move towards building an African-led financing platform for energy development at a time when access to conventional funding for oil and gas projects is becoming more constrained.
However, the bank’s broader objective will be to mobilise investment across the energy value chain to support production, processing and distribution, strengthen regional trade and help African countries meet their growing energy needs.
Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.
