African financial institutions have formally established the Africa Energy Bank, a $5 billion initiative designed to address the continent's energy financing needs amid declining funding from traditional international lenders for fossil fuel projects.
The African Export-Import Bank (Afreximbank) and the African Petroleum Producers' Organisation (APPO) announced the formal establishment of the bank in a statement released on Saturday, October 31.
The bank's inaugural general meeting, held in Abuja, Nigeria, appointed Helmy Ghazi as its first president and established its inaugural board of directors.
With an authorised capital of $5 billion, the institution is expected to provide financing for projects across the entire energy value chain, including oil and gas exploration and production, refining, and distribution.
The initiative comes as African countries face significant challenges in securing capital for energy infrastructure, particularly as several international financial institutions and lenders scale back their exposure to fossil fuel investments.
According to the announcement, Africa's energy investment requirements are estimated at approximately $200 billion, highlighting the scale of financing needed to support the continent's energy development.
Reuters previously reported in February 2025 that the bank was targeting a mid-2025 launch. South Africa had also indicated interest in joining the institution, despite not being a member of APPO.
Earlier reports indicated that the bank was targeting an eventual asset base of $120 billion.
The formal establishment represents a significant institutional step towards creating an African-led financing platform for energy development, although its ability to mobilise capital and translate its mandate into funded projects will be central to its long-term impact.
Source: Reuters
Reporting: Chandni Shah
Editing: Jan Harvey
