The Africa Energy Bank (AEB) has been formally established in Abuja, Nigeria, with an authorised capital of $5bn, in a major move by African petroleum-producing countries to reduce dependence on foreign financiers and mobilise funding for the continent’s energy industry.
The bank, established jointly by the African Export-Import Bank (Afreximbank) and the African Petroleum Producers’ Organisation (APPO), is expected to finance oil, gas and other energy projects across Africa amid declining international investment in fossil fuel development.
Its establishment was confirmed at its inaugural general meeting in Abuja on October 31, 2026, where Egyptian banker Helmy Ghazi was appointed as its first president.
The meeting also constituted the bank’s inaugural board of directors, with representatives drawn from the public and private sectors and policy institutions across the continent.
However, the $5bn authorised capital should not be mistaken for money already available for disbursement. The founders have outlined plans for an initial subscription tranche of $1.25bn, while more than $500m has reportedly been mobilised to support the commencement of operations.
The exact breakdown of subscribed and paid-up capital has not been publicly reconciled though the distinction is significant, particularly given the estimated $200bn Africa requires to develop its energy infrastructure.
While the bank’s authorised capital represents an important financial commitment, it accounts for only a fraction of the continent’s investment needs.
The bank is expected to begin operations on January 4, 2027, with its management targeting the financing of at least three projects within its first year. APPO Secretary-General Farid Ghezali had earlier indicated that the institution would seek to raise $15bn within three years, beginning with a pipeline of 10 projects in countries including Nigeria, Angola and Libya. However, no initial borrowers or approved financing arrangements have been announced.
It was gathered that the new institution will operate as an independent, supranational pan-African financial institution, mobilising investments from African governments, national oil companies, commercial banks, development finance institutions and private investors.
Its mandate covers the entire energy value chain, including oil and gas exploration, production, transportation, processing, refining, storage and distribution. It is also expected to support power generation and transmission infrastructure, domestic energy supply and cross-border energy trade.
The initiative comes against the backdrop of growing difficulties African oil and gas producers face in securing international financing, as several global financial institutions reduce their exposure to fossil fuel projects in response to climate-related policies and pressure to accelerate the transition to cleaner energy.
Its proponents argue that the continent should not be denied access to financing for its natural resources while millions of Africans continue to lack reliable electricity and access to modern energy services.
At the African Energy Week in Cape Town on October 13, Ghezali identified four priority areas for the bank: export infrastructure, domestic energy infrastructure, clean cooking and electricity. He said the institution would adopt a corridor-based approach to financing projects that could stimulate regional economic development, stressing that commitments to export markets must not undermine domestic energy supply.
The financing challenge also extends beyond oil production and export facilities. African Energy Commission Executive Director Rashid Ali Abdallah observed at the forum that investment had largely concentrated on export terminals, leaving cross-border pipelines struggling to attract the funding required for development.
Similarly, Gas Exporting Countries Forum analyst Abubakar Abbas estimated that Africa would require at least $1tn over the next 30 years to develop its gas resources, underscoring the scale of the financing gap facing the continent.
Côte d’Ivoire’s Minister of Mines, Petroleum and Energy, Mamadou Sangafowa-Coulibaly, who holds APPO’s rotating presidency, was elected chairman of the bank’s General Assembly for a one-year term.
Nigeria’s Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, said the minimum capital required to establish the institution had been mobilised, its founding charter ratified by the necessary participating countries and external auditors appointed.
Nigeria, which secured the right to host the institution in July 2024, is expected to play a significant role in its development. Under the initial funding arrangement, each participating African country was expected to contribute at least $83m, with the contributions of member states projected to generate approximately $1.5bn. Afreximbank and APPO, as founding institutions, were also expected to provide matching support.
By April 2025, Nigeria, Angola and Ghana had paid their respective contributions, representing 44 per cent of the minimum amount expected from APPO member countries.
Afreximbank had also previously approved a proposed $1.7bn investment in the institution, positioning it as one of the major financial backers of the initiative.
The road to the bank’s establishment, however, has been considerably longer than initially anticipated. Following a resolution adopted by APPO ministers in Luanda, Angola, in May 2022, the institution was initially expected to commence operations by June 2024. Subsequent deadlines in January and June 2025, as well as June 2026, were missed before Nigeria handed over its Abuja headquarters in February 2026.
