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$5bn Africa Energy Bank to Take-off January 2027
The $5bn Africa Energy Bank (AEB) is set to commence operations on January 4, 2027, after a two-year delay.
The bank was established by the African Export-Import Bank (Afreximbank) and the African Petroleum Producers’ Organisation (APPO), with its headquarters in Abuja, Nigeria.
The decision was announced at its inaugural general meeting in Abuja at the weekend.
With an authorised capital of $5bn, the AEB will finance projects across the energy value chain, including exploration and production, transportation, processing, refining and distribution, as well as renewable energy.
According to Afreximbank, the bank aims to bridge Africa’s estimated $200bn energy investment gap at a time when traditional financiers are withdrawing from fossil fuels, even as oil and gas remain vital to the continent’s energy systems.
The bank will operate as an independent, supranational pan-African financial institution, mobilising capital from governments, national oil companies, financial institutions and private investors to strengthen productive capacity, reduce dependence on imported petroleum products and promote intra-African energy trade.
At the meeting, shareholders appointed Helmy Ghazi as its inaugural President and constituted its first Board of Directors.
Nigeria, which hosts the headquarters, has committed $100m to the bank’s capitalisation. APPO comprises 18 member countries including Nigeria, Algeria, Angola, Egypt and South Africa.
The January 2025 operationalisation deadline was earlier missed due to disagreements over equity subscriptions and other establishment requirements.
For Nigeria, experts say hosting the bank strengthens its position as a financial and energy investment hub.
