- Africa Establishes Energy Bank to Tackle US$200 Billion Financing Gap
The African Export-Import Bank and the African Petroleum Producers’ Organisation have formally established the Africa Energy Bank, appointing Egyptian banker Helmy Ghazi as the institution’s inaugural president.
The new lender, which has authorised capital of US$5 billion, was formally constituted at its first general meeting held in Abuja, Nigeria, on October 31, 2026.
The meeting also approved the formation of the bank’s first Board of Directors, comprising representatives from Africa’s public and private sectors and leading policy institutions.
The Africa Energy Bank has been established to address the continent’s widening energy financing gap as traditional international lenders reduce their exposure to oil and gas projects.
Africa’s energy investment requirements are estimated at approximately US$200 billion, reflecting the substantial capital needed for generation, transmission, petroleum infrastructure and expansion of electricity access.
Despite growing global pressure to reduce fossil-fuel financing, oil and gas remain central to the energy systems and export revenues of several African economies.
“The Africa Energy Bank aims to bridge this financing gap while supporting a just energy transition for African countries,” Afreximbank and APPO said in a joint statement announcing the institution’s formal establishment.
The bank will operate as an independent, supranational and pan-African financial institution. Its mandate covers projects across the energy value chain, including exploration, production, transportation, processing, refining and distribution.
It is expected to mobilise capital from African governments, national oil companies, commercial financial institutions and private investors.
The institution will also support energy generation and transmission projects considered necessary for Africa’s industrial development.
Afreximbank and APPO said growing electricity demand from emerging technologies, particularly artificial intelligence, had increased the urgency of developing more reliable and extensive energy systems across the continent.
“This move is in recognition that significant investments in energy generation and transmission are required to accelerate industrial growth and leverage the tremendous opportunities presented by emerging technologies, particularly artificial intelligence,” the organisations said.
The Africa Energy Bank is also expected to help reduce African countries’ dependence on imported refined petroleum products.
Although the continent possesses significant crude oil and natural gas reserves, inadequate refining, storage and transportation infrastructure has forced several producing countries to export crude while importing petrol, diesel and other refined products at considerable cost.
By financing processing, refining and distribution infrastructure, the bank intends to help African countries retain more value from their natural resources and expand trade in energy products within the continent.
Its mandate also includes increasing African participation in energy projects, ensuring that ownership, financing and decision-making are not dominated entirely by foreign institutions.
Afreximbank and APPO said the objective was to ensure that “Africa’s energy future is shaped by Africans.”
The institution has been under development since 2022, when APPO and Afreximbank began discussions about creating a dedicated source of finance for the continent’s energy sector.
Its launch was initially expected earlier, but the process of raising capital, selecting a host country and completing the required institutional arrangements delayed its operationalisation.
Nigeria was eventually chosen to host the bank, with its headquarters based in Abuja.
Afreximbank emerged as a major financial backer during the development phase. Reports in 2024 indicated that the trade finance institution had approved US$1.7 billion for investment in the bank.
APPO currently has 18 member countries, all of which produce oil, natural gas or both. The organisation has argued that international climate-finance policies must recognise Africa’s development conditions, including widespread energy poverty and the continent’s relatively limited historical contribution to global emissions.
The appointment of Helmy Ghazi places an experienced corporate and investment banker at the head of the new institution.
Before his appointment, Mr Ghazi served as Deputy Chief Executive Officer, Managing Director and Head of Global Banking at HSBC Bank Egypt.
He has more than 25 years of experience in banking, covering business growth, international markets, institutional relationships, investment development, team leadership and risk management.
His immediate responsibilities will include establishing the bank’s operational structure, mobilising subscribed capital and developing a pipeline of commercially viable projects.
He will also be expected to ensure that the institution maintains strong lending standards while fulfilling its development mandate.
That balance will be critical. Africa’s energy sector contains significant opportunities, but many projects face political, regulatory, currency and repayment risks that have discouraged international investors.
The bank must therefore demonstrate that it can evaluate projects independently, price risk properly and attract private capital without becoming overly exposed to politically directed or financially unsustainable investments.
Its authorised capital of US$5 billion is substantial for a newly established institution but represents only a fraction of Africa’s estimated US$200 billion energy financing requirement.
The bank’s impact will consequently depend on its ability to use its capital to attract additional funding from governments, institutional investors and commercial lenders.
It may also need to offer guarantees, structured finance and risk-sharing mechanisms that make projects attractive to investors who would otherwise remain cautious.
The institution’s launch comes as many Western banks and development financiers withdraw from fossil-fuel projects in response to climate commitments and pressure from shareholders.
For African governments, this retreat presents a financing problem. Several countries still regard natural gas as a transitional fuel that can expand electricity access, support industrialisation and reduce reliance on more polluting fuels.
The Africa Energy Bank will therefore operate at the centre of a difficult policy debate: how the continent can develop its oil and gas resources while increasing renewable energy investment and meeting international climate obligations.
Its stated commitment to a just energy transition suggests that its role will not be limited to petroleum. However, the initial mandate places significant emphasis on maintaining financing for oil and gas projects no longer favoured by traditional lenders.
The bank’s establishment gives African energy producers a potentially important financing platform. Its credibility, however, will ultimately be determined by the quality of the projects it finances, the transparency of its governance and its ability to convert its US$5 billion capital base into reliable energy, industrial growth and greater economic value for the continent.
