Energy sector experts have welcomed the establishment of the $5 billion Africa Energy Bank (AEB), describing it as a significant step towards addressing Africa’s energy financing challenges. However, they have stressed that the institution will require substantially more capital from governments and private investors to make a meaningful impact on the continent’s estimated $200 billion energy investment gap.
The bank, jointly promoted by the African Export-Import Bank (Afreximbank) and the African Petroleum Producers’ Organisation (APPO), formally commenced operations following its inaugural general meeting in Abuja on October 31, 2026. Egyptian banker Helmy Ghazi was appointed as its pioneer president.
Reacting to the development, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf, described the initiative as an important development for Africa’s energy industry. He said the bank could support the growth of the sector, given its potential to generate significant returns on investment.
Yusuf called on stakeholders to support the institution, particularly as several Western financial institutions and development lenders have reduced their exposure to fossil-fuel projects due to climate-related considerations.
Similarly, oil and gas sustainability expert and management consultant, Meka Olowola, described the establishment of the bank as a bold and promising initiative but cautioned against expecting it to independently resolve Africa’s enormous energy financing requirements.
Olowola said the institution could make a meaningful contribution by converting its capital into well-prepared and bankable projects. However, he emphasised that its long-term effectiveness would depend largely on its ability to attract additional funding from governments and private investors.
He noted that the bank could serve as a catalyst for much larger investments across the continent’s energy sector.
Addressing Africa’s Energy Financing Gap
The Africa Energy Bank was conceived against the backdrop of declining international financing for oil and gas projects, despite the continued importance of hydrocarbons to many African economies.
The initiative dates back to May 2022, when APPO ministers meeting in Luanda, Angola, adopted a resolution directing the organisation and the Africa Energy Investment Corporation to work towards establishing a dedicated financial institution for the continent’s energy industry.
Afreximbank subsequently joined the project as a strategic partner, with both institutions signing the bank’s Establishment Agreement and Charter in June 2024.
The AEB is structured as an independent, supranational pan-African financial institution with an authorised capital of $5 billion. It is expected to mobilise resources from African governments, national oil companies, commercial banks, development finance institutions and private investors.
Its financing mandate covers the entire energy value chain, including oil and gas exploration and production, transportation, processing, refining and distribution. The institution is also expected to support power generation and transmission infrastructure, alongside emerging technologies that require reliable energy supplies.
Although the bank is rooted in the oil and gas industry, its mandate includes supporting a just energy transition that reflects the development priorities of African countries.
Afreximbank had earlier approved a $1.7 billion investment in the institution, positioning it as one of the bank’s major financial backers. APPO, which comprises 18 oil- and gas-producing African countries, is also a key partner in the initiative.
However, experts maintain that the bank’s success will ultimately depend on its capacity to mobilise funding beyond its initial capital base, develop commercially viable projects and attract sustained participation from public and private investors. Its ability to achieve these objectives could help reduce Africa’s dependence on external financing and accelerate investment in critical energy infrastructure.
