The Africa Energy Bank aims to finance oil and gas projects while supporting Africa’s energy transition, with an ambitious target of reaching a $120 billion asset base.
Initially expected to commence operations in January 2025, the bank is a joint initiative between Afreximbank and the African Petroleum Producers Organization (APPO).
“The building is ready, and we are only putting finishing touches to it, by the end of this quarter, this bank will take off,” Lokpobiri said.
After securing victory over three competing nations, Nigeria was selected as the host country for the newly established Africa Energy Bank (AEB), reinforcing its position as Africa’s leading oil producer.
The AEB headquarters will be in Abuja, with 45% of its initial capital already secured through financial commitments from key African nations, including Nigeria, Angola, and Ghana.
AEB’s core mandate
The AEB was created to address Africa’s funding gap in the energy sector, especially as global financial institutions face increasing pressure from environmental groups to shift investments away from fossil fuels.
With a $5 billion initial capital target, the AEB seeks to drive industrialization and economic growth by ensuring local resource utilization.
The AEB will counter the withdrawal of traditional financiers from Africa’s oil and gas sector, crucial for a continent with over 125 billion barrels of proven crude oil reserves and 600 trillion cubic feet of gas.
The African Petroleum Producers Organization (APPO) and Afreximbank are the primary financiers of the Africa Energy Bank (AEB), with additional contributions from APPO member states and other financial institutions.
The bank is seeking $83 million from each of its 18 APPO signatories, totaling $1.5 billion in initial funding.
Furthermore, AEB aims to collaborate with up to 700 African banks to drive sustainable growth and profitability in the continent’s energy sector.
Member states of the (APPO) include Algeria, Angola, Benin, Cameroon, Chad, the Republic of the Congo, the Democratic Republic of the Congo, Ivory Coast, Egypt, Ghana, Equatorial Guinea, Gabon, Libya, Namibia, Niger, Nigeria, Senegal, and South Africa.
Given Africa’s significant energy poverty, the bank will play a key role in securing sustainable energy access.
