Afreximbank and the African Petroleum Producers’ Organization (APPO) have formally launched the Africa Energy Bank (AEB).
The new bank, which was established at an inaugural meeting in Abuja, Nigeria, on October 31, aims to finance energy projects and reduce the continent’s reliance on external funding as global investors retreat from fossil fuels, according to Afreximbank.
The AEB begins with authorized capital of US$5 billion, and it will finance projects across the energy value chain, including exploration, production, transportation, processing, refining and distribution.
Its founders say the institution is intended to strengthen African productive capacity, reduce dependence on imported petroleum products, and expand intra-African trade in energy goods. It will operate independently as a supranational institution and seek capital from governments, national oil companies, financial institutions and private investors.
The launch comes as Africa faces an estimated $200 billion in annual energy investment needs, while traditional lenders increasingly withdraw from fossil-fuel financing.
Afreximbank and APPO argue that oil and gas remain essential to African energy systems, and that the bank should help finance development while supporting what they describe as a “just energy transition”.
The new lender is designed to address a widening financing gap for Africa’s oil, gas and broader energy sector. The bank’s supporters also see it as a way to ensure African governments and institutions have greater control over how the continent’s energy resources are developed.
The inaugural general meeting appointed Helmy Ghazi as the AEB’s first president and constituted its initial board, drawing members from the public and private sectors as well as policy institutions. Ghazi previously served as deputy CEO of HSBC Bank Egypt, according to reporting on the launch.
The bank is expected to begin financing projects in early 2027, with early priorities including regional refineries, pipelines, power generation and clean-cooking initiatives.
