The African Export-Import Bank (Afreximbank) and the African Petroleum Producers’ Organization (APPO) have established the Africa Energy Bank (AEB), with an authorised capital of $5 billion, to address funding challenges in the continent’s energy industry.
The two organisations announced the development on Saturday during the bank’s inaugural general meeting in Abuja, where Helmy Ghazi was appointed as its first president.
The establishment of the bank comes as Africa faces an estimated $200 billion investment requirement in its energy sector, while traditional international lenders continue to reduce their exposure to fossil fuel projects.
Afreximbank and APPO said the new institution would provide an alternative source of financing for African energy projects and help close the funding gap affecting the development of the sector.
The bank will operate as an independent pan-African financial institution, with plans to attract funding from African governments, national oil companies, commercial banks and private investors.
Its financing activities will cover the entire oil and gas value chain, including exploration, production, transportation, processing, refining and distribution.
According to the founding organisations, the institution is also expected to strengthen Africa’s participation in its energy industry, reduce reliance on imported petroleum products and encourage trade in energy resources between African countries.
At the inaugural meeting, members also approved the formation of the bank’s first board of directors, comprising representatives from the public and private sectors, alongside policy institutions from across the continent.
The initiative is expected to provide African energy companies and governments with greater access to capital, particularly as international financing for oil and gas developments becomes increasingly constrained.
The bank’s establishment also reflects efforts by African institutions to mobilise domestic and continental resources to develop the continent’s energy infrastructure while supporting a just energy transition.
