Africa: African Energy Bank to be launched in January 2025

An institution to fill the energy gap

The African Energy Bank (AEB) , a new key player in financing energy projects in Africa, plans to start operations on January 28, 2025. This announcement was made via a statement from the Nigerian government at the end of the 19th Board Meeting of the African Petroleum Producers Organization ( APPO ), held on October 30 in Yaoundé, Cameroon.

Founded in June 2024 by APPO in partnership with Afreximbank, the AEB was endowed with an initial capital of USD 5 billion . Its mission is to:

• Financing oil, gas and potentially renewable energy projects;
• Reducing the continent’s energy deficit;
• Exploiting the continent’s vast hydrocarbon resources to meet growing energy needs.

Headquarters in Abuja and contributions from Member States

Nigeria’s Minister of Petroleum, Nicholas Agbo Ella , has confirmed that construction of the AEB headquarters in Abuja is in its final stages, with its inauguration scheduled for January 2025. Host country Nigeria has already contributed USD 69.12 million to the bank’s capital.

For his part, APPO Secretary General Dr. Omar Farouk Ibrahim revealed that 50% of the funds needed to start AEB activities are already available , while calling on members to intensify their efforts to meet the set deadlines.

Africa urgently needs funding

According to the International Energy Agency ( IEA ), Africa faces a colossal challenge: 600 million people still do not have access to electricity , hampering economic and social development.

To meet the continent’s energy and climate goals by 2030 , annual investments of over USD 200 billion would need to be mobilized . The creation of the AEB therefore responds to a dual emergency:

• Improving access to energy on the continent;
• Reconciling the exploitation of fossil resources and the development of renewable energies.

Conclusion

The launch of the African Energy Bank marks a major milestone in addressing the continent’s energy challenges. With strategic financing focused on hydrocarbons and renewables, the AEB aims to catalyse Africa’s energy transition while boosting its economic development. The commitment of member countries will be crucial to realising this vision and ensuring a sustainable energy future for Africa.