Africa Energy Bank Officially Established in Abuja

The establishment of the Africa Energy Bank reflects African governments’ determination to take greater control of the continent’s energy future. It also recognizes the need for significant investment in energy generation and transmission to support industrial growth and take advantage of opportunities from emerging technologies, particularly artificial intelligence (AI).

The Bank is being established at a time when Africa’s energy investment needs stand at an estimated US$200 billion. Traditional providers of short- and long-term financing are reducing their support for fossil fuel projects, even though oil and gas remain important to the continent’s energy systems. The Africa Energy Bank aims to address this financing gap while supporting a just energy transition across African countries.

With an authorized capital of US$5 billion, the AEB will finance projects across the energy value chain, covering exploration and production, transportation, processing, refining and distribution. Through these investments, the Bank aims to strengthen production capacity, reduce dependence on imported petroleum products and increase trade in energy products between African countries. It will also promote greater African participation in the continent’s energy sector, ensuring that Africans play a leading role in shaping the continent’s energy future.

The AEB will operate as an independent, pan-African financial institution with a supranational mandate. It will attract funding from governments, national oil companies, financial institutions and private investors to support energy development across the continent.

During the first general assembly, members approved the appointment of the Bank’s first President, Mr Helmy Ghazi, and established its inaugural Board of Directors. The Board will include representatives from the public and private sectors, as well as leading policy institutions across Africa.