In a significant development for Africa’s energy sector, Nigeria, Angola, and Ghana have fulfilled their capital commitments toward the establishment of the Africa Energy Bank (AEB), a key financial institution designed to address funding challenges in the continent’s oil and gas industry. This milestone marks 44% of the initial funding target from the African Petroleum Producers Organisation (APPO) members, a vital step in initiating the bank’s operations.
The AEB, with an initial capitalization of $5 billion, aims to support oil and gas projects across Africa, particularly at a time when traditional Western financial institutions are hesitant to fund fossil fuel ventures due to environmental concerns. APPO had requested contributions of $83 million from each of its 18 member states to meet the bank’s funding target. Alongside Nigeria, Angola, and Ghana, Algeria, Benin, the Republic of Congo, Equatorial Guinea, and Ivory Coast have also pledged their contributions. The bank plans to commence operations in the first half of 2025.
Nigeria, as Sub-Saharan Africa’s largest oil producer, is a critical player in the region’s energy future, with ongoing projects like TotalEnergies’ $550 million Ubeta Gas Field Development and Shell’s $5 billion Bonga North Project. With the Petroleum Industry Act (PIA) introducing regulatory reforms to enhance transparency, Nigeria is positioning itself as a hub for energy investment. Angola, on the other hand, is diversifying its energy portfolio, with major projects such as the $6 billion Kaminho Deepwater Project and plans for a $12 billion expansion of its Angola LNG plant. Additionally, the country is advancing its first green hydrogen project, expected to reach a final investment decision by 2025.
Ghana is strengthening its oil and gas sector through agreements with companies like Eni and Tullow Oil to boost offshore exploration and optimize existing assets. The country’s commitment to regulatory reforms and infrastructure modernization is creating a favorable environment for investment. Ghana is also diversifying its energy mix with an increased focus on renewables to ensure long-term energy security.
The AEB’s establishment represents a strategic response to Africa’s need for financial institutions tailored to the continent’s unique energy landscape. As more countries contribute to the bank
