African Lenders Launch $5 Billion Energy Bank to Plug Funding Gap as Western Financiers Retreat from Fossil Fuels

The African Export-Import Bank (Afreximbank) and the African Petroleum Producers' Organisation (APPO) have formally established the Africa Energy Bank (AEB), a new multilateral institution with authorised capital of $5 billion designed to finance energy projects across the continent as traditional Western lenders increasingly withdraw from fossil fuel investments .

The bank's inaugural general meeting, held in Abuja on October 31, appointed Egyptian banker Helmy Ghazi as its first president and constituted its inaugural board of directors . Ghazi previously served as Deputy CEO and Managing Director, Head of Global Banking, at HSBC Bank Egypt, bringing over 25 years of banking experience to the role .

Bridging a $200 Billion Financing Gap

The establishment of the AEB comes as Africa's energy investment needs are estimated at approximately $200 billion, according to the announcement . Traditional providers of short- and long-term financing have been reducing their exposure to fossil fuels, even as oil and gas remain central to Africa's energy systems and industrial ambitions .

The bank will support projects across the entire energy value chain, including exploration and production, transportation, processing, refining, and distribution . Its mandate extends beyond upstream development to strengthening Africa's productive capacity, reducing dependence on imported petroleum products, and promoting intra-African trade in energy goods .

Côte d'Ivoire's Minister of Mines, Petroleum and Energy, Mamadou Sangafowa-Coulibaly, who was elected to head the bank's General Assembly for a one-year term, highlighted the paradox the institution seeks to address: Africa imports roughly 70% of the petroleum products it consumes while exporting 75% of its crude production .

"For once, we have the raw material, the market and the expertise. Only financing was missing," Sangafowa-Coulibaly said .

Leadership and Operational Timeline

The bank's first Board of Directors comprises representatives from both the public and private sectors, as well as leading policy institutions from across the continent . The inaugural meeting approved January 4, 2027, as the official commencement date for the bank's operations .

The AEB will operate as an independent, supranational pan-African financial institution, seeking investments from governments, national oil companies, financial institutions, and private investors .

Long-Term Ambitions and Membership

Beyond its initial $5 billion authorised capital, the bank has set an ambitious long-term objective of building an asset base of $120 billion, according to earlier Reuters reporting .

APPO, which represents 18 African petroleum-producing countries, and Afreximbank are the founding institutions . Member countries include Nigeria, Algeria, Angola, Benin, Cameroon, Chad, the Republic of Congo, the Democratic Republic of Congo, Côte d'Ivoire, Egypt, Equatorial Guinea, Gabon, Ghana, Libya, Namibia, Niger, Senegal, and South Africa . Non-APPO members, including South Africa, have signalled interest in participating, reflecting broader continental interest in energy independence and regional financial resilience .

Strategic Rationale

The establishment of the AEB reflects a recognition that significant investments in energy generation and transmission are required to accelerate industrial growth and leverage opportunities presented by emerging technologies, particularly artificial intelligence, which demand substantial power infrastructure .

The bank positions itself as supporting a "just energy transition" for African countries—one that balances decarbonisation imperatives with the continent's development priorities and the continued role of hydrocarbons in fuelling economic growth .