Afreximbank and the African Petroleum Producers' Organization have established the Africa Energy Bank to finance oil and gas projects that Western lenders have dropped under climate commitments. The bank has mobilized about $500 million so far. It also enters a field where China provides capital through policy banks and contractor packages.
Afreximbank and the African Petroleum Producers' Organization (APPO) formally established the Africa Energy Bank at an inaugural general meeting in Abuja on October 31. The bank targets oil and gas projects that Western banks and development lenders have dropped under their climate commitments. Its first president is Helmy Ghazi, formerly deputy CEO of HSBC Bank Egypt.
A $5 billion ceiling, $500 million raised
Authorized capital of $5 billion is a ceiling. About $500 million has been mobilized so far, including $222 million from Afreximbank and a Nigerian contribution reported at between $100 million and $200 million.
The bank aims to mobilize up to $10 billion in financing in its first operational phase. It plans to fund at least three projects in 2027, starting with regional refineries and pipelines. Its founders want to cut Africa's dependence on imported petroleum products and expand intra-African energy trade.
Africa needs an estimated $200 billion in energy investment, and roughly 600 million Africans still lack electricity.
Private money favors clean power while China dominates energy and mining
Private capital is moving toward clean energy instead. Climate tech startups raised about $1.2 billion in 2025, or 38% of all venture funding on the continent, according to Africa: The Big Deal.
China, meanwhile, continues to dominate Africa's energy and mining sectors. Its Export-Import Bank and China Development Bank have lent $182 billion across Africa since 2000, mostly into the energy sector.
Chinese projects usually come as a package. A Chinese policy bank lends the money, and a state-backed Chinese firm handles engineering, procurement and construction. The Africa Energy Bank is meant to give African governments their own source of capital and their own say over which projects get built.
Source: Oilprice.com
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