The newly established Africa Energy Bank (AEB) is set to begin deploying capital to fund energy projects across the continent in early 2027, according to Farid Ghezali, Secretary General of the African Petroleum Producers’ Organisation (APPO).
Launched by APPO and the African Export-Import Bank (Afreximbank), the bank was created to fill a financing gap in Africa’s oil, gas and broader energy sectors, following the withdrawal of funding support from global lenders. It will become operational within weeks, with the first project financings expected next year.
The AEB will use a corridor approach, prioritising projects that deliver regional economic development across four pillars: export infrastructure, domestic infrastructure, clean cooking and power. This strategy is designed to ensure that financing reaches projects with the greatest potential to drive growth and improve energy access.
The bank aims to create an African-led financing channel for energy projects across the continent, including oil and gas, power, renewables and cross-border infrastructure. By financing projects across the energy value chain, the AEB seeks to address barriers that prevent infrastructure from reaching financial close.
The AEB has secured $500 million in initial paid-up capital, according to Helen Brume, Director of Project and Asset-Based Finance at Afreximbank. The bank’s initial share capital is set at $5 billion, with plans to expand financing into a secondary phase in 2027 to build a gas hub in line with the Congo Brazzaville Declaration.
The bank has also set a longer-term target of mobilising $200 billion for midstream and downstream energy projects across the continent. Its roadmap includes a first phase focused on launching the platform with 10-pillar projects in countries such as Nigeria, Angola and Libya, followed by a regional gas-oil trade phase in 2027.
The AEB’s launch comes as global lenders have scaled back funding for fossil fuel projects, leaving African producers with fewer options to finance energy development. By establishing its own financing institution, Africa aims to take greater control over its energy future and ensure that critical projects can move forward.
For African governments and energy companies, the bank represents a new source of capital at a time when access to international financing has become more constrained. The challenge now is to ensure that the AEB’s financing reaches projects that deliver tangible economic and social benefits across the continent.
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