The African Export-Import Bank (Afreximbank) and the African Petroleum Producers’ Organisation (APPO) have formally established a $5 billion Africa Energy Bank to finance energy projects across the continent, seeking to fill a funding gap as traditional lenders reduce their exposure to fossil fuels.
The announcement was made at the bank’s inaugural general meeting in Abuja, Nigeria, on October 31, 2026, where members appointed Helmy Ghazi as its first president and approved the formation of its inaugural board of directors.
The bank is being established as Africa faces estimated energy investment needs of $200 billion, according to the announcement. Its promoters say the withdrawal of some traditional sources of short- and long-term financing for fossil fuel projects has created a funding gap, even as oil and gas remain important to the continent’s energy systems.
With an authorised capital of $5 billion, the institution will finance projects across the energy value chain, including exploration and production, transportation, processing, refining and distribution.
Its mandate also includes supporting infrastructure to expand energy production and transmission, reduce dependence on imported petroleum products and increase trade in energy goods between African countries.
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The initiative reflects efforts by African governments to secure financing for energy development as the continent seeks to expand industrial capacity and respond to rising energy demand from emerging technologies, including artificial intelligence.
The 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 investors to support projects across the continent.
Its promoters say the institution will also seek to increase African participation in the energy industry, giving local governments, companies and investors a greater role in shaping the continent’s energy future.
The bank’s establishment comes amid the challenge of balancing continued investment in oil and gas with the transition to cleaner energy sources. Its stated mandate includes supporting a just energy transition for African countries, although the announcement did not specify how funding would be allocated between fossil fuel and renewable energy projects.
The inaugural board will include representatives from the public and private sectors, as well as policy institutions from across Africa. The announcement did not provide a breakdown of the bank’s ownership structure, its initial funding contributions, lending terms or the timetable for beginning operations.
