ABUJA, Nov 1 – The African Export-Import Bank (Afreximbank) and the African Petroleum Producers’ Organisation (APPO) have formally established the Africa Energy Bank (AEB), creating a new pan-African financial institution focused on financing energy projects across the continent.
The announcement was made during the bank’s inaugural general meeting in Abuja, Nigeria, on October 31, 2026, according to a statement from Afreximbank.
The institution is being established against an estimated $200 billion in annual energy investment needs across Africa, at a time when traditional sources of short- and long-term financing for the sector are increasingly withdrawing from fossil fuel investments.
Despite this shift in international financing, oil and gas remain important components of Africa’s energy systems. The Africa Energy Bank is intended to help address the resulting funding gap while supporting a just energy transition that reflects the continent’s development priorities.
The bank has authorised capital of $5 billion and will finance projects across the energy value chain, including exploration and production, transportation, processing, refining and distribution.
Its mandate includes strengthening Africa’s productive capacity, reducing dependence on imported petroleum products and promoting intra-African trade in energy commodities.
The institution also aims to increase African participation in the continent’s energy industry, with a focus on ensuring that local governments, companies and investors play a greater role in shaping and financing energy development.
The Africa Energy Bank will operate as an independent, supranational pan-African financial institution. It plans to mobilise investment from governments, national oil companies, financial institutions and private-sector investors to support projects across the continent.
Resolutions adopted at the inaugural general meeting included the appointment of Helmy Ghazi as the bank’s first president and the establishment of its inaugural Board of Directors.
The board will comprise representatives from the public and private sectors, alongside leading policy institutions from across Africa.
The establishment of the Africa Energy Bank comes as African economies face the dual challenge of expanding energy access and mobilising the capital required to support industrialisation, infrastructure development and growing electricity demand.
By creating a dedicated financing institution for the energy sector, Afreximbank and APPO aim to expand access to capital for projects that may face constraints from conventional international lenders.
The bank’s ability to mobilise investment and translate its authorised capital into financing for commercially viable projects will be central to its role in addressing Africa’s energy investment requirements.
