Africa is making a bold leap toward energy self-sufficiency as the Africa Energy Bank secures 44% of its $5 billion start-up capital, aiming to fund oil and gas projects independently of Western finance.
Backed by oil-rich nations like Nigeria, Angola, and Ghana, the Africa Energy Bank is set to launch operations by mid-2025, offering indigenous energy firms new hope with billions earmarked for project financing.
In a bold move to boost Africa’s energy independence, the Africa Energy Bank (AEB) has secured 44% of its required take-off capital, signalling a major step toward operational launch. Backed by key oil-producing nations, the bank aims to fund large-scale oil and gas projects across the continent, reducing reliance on Western financiers.
The African Petroleum Producers Organization (APPO), which owns the bank, confirmed that Nigeria, Angola, and Ghana have all fulfilled their initial financial commitments. Each participating member is expected to contribute around $83 million toward the bank’s $5 billion start-up capital. The bank’s headquarters will be based in Abuja, Nigeria.
Minister of State for Petroleum Resources, Heineken Lokpobiri, disclosed at the Offshore Technology Conference in Houston, announced that operations are slated to begin before the end of the second quarter of 2025 and the African Export-Import Bank (Afreximbank) has already raised $19 billion in support of the AEB, with $14 billion marked for project financing and $5 billion as foundational capital.
The timing aligns with growing demands for self-sustained financing in Africa’s critical oil and gas sectors, which continue to face funding gaps due to diminishing Western investment in fossil fuels.
APPO Secretary General, Omar Farouk Ibrahim, explained that the bank’s purpose is to bridge the substantial financing gaps that have long hindered growth in Africa’s petroleum sector. “We must take our future into our hands,” he emphasized, noting that the bank would enable member countries to drive and control their own energy development.
Felix Ogbe, Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), also affirmed the board’s commitment to the initiative, revealing that NCDMB was among the founding contributors. He added that the bank will prioritize funding for indigenous energy firms and local infrastructure.
As it starts up for operations, the AEB is expected to become a critical player in Africa’s energy landscape, financing exploration, production, and value-chain projects that had previously struggled due to limited access to capital.
With financial backing from both national governments and institutions like Afreximbank, Africa Energy Bank stands poised to shift the continent’s energy trajectory, placing long-term control and development back in African hands.
