ABUJA, Nigeria — Africa has a new bank dedicated to financing its energy sector. The African Export-Import Bank and the African Petroleum Producers’ Organisation announced the formal establishment of the Africa Energy Bank on Saturday, with $5 billion in authorized capital.
The announcement was made at the bank’s inaugural general meeting in Abuja. Resolutions passed there named Helmy Ghazi as the first president. The meeting also formed a first board of directors drawn from the public and private sectors and from leading policy institutions across Africa, according to a statement from Afreximbank.
Africa’s energy investment needs are estimated at $200 billion, the statement said. Traditional sources of short- and long-term financing for the sector are withdrawing from fossil fuels, it added, even though oil and gas remain vital to the continent’s energy systems.
The Africa Energy Bank is meant to bridge that financing gap. It will also support what Afreximbank described as a just energy transition for African countries.
Its financing will cover the energy value chain, from exploration and production to transportation, processing, refining and distribution. According to Afreximbank, the goal is to strengthen productive capacity, reduce reliance on imported petroleum products and promote energy trade within Africa.
The bank will operate as an independent pan-African financial institution with supranational status. It will seek investment from governments, national oil companies, financial institutions and private investors.
The statement said the bank reflects African governments’ determination to secure their own energy future. It added that major investment in energy generation and transmission is needed to accelerate industrial growth and seize opportunities from emerging technologies, particularly artificial intelligence.
The bank’s mandate also includes promoting strong African participation in the energy sector, so that the continent’s energy future is shaped by Africans.
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