ABUJA, October 31, 2026 (DAILYNWZ) — The African Export-Import Bank (Afreximbank) and the African Petroleum Producers’ Organisation (APPO) have formally established a $5 billion Africa Energy Bank to finance projects across the continent’s oil and gas sector as traditional lenders increasingly retreat from fossil fuels.
The new institution is designed to address a major funding shortfall in Africa’s energy industry, where investment requirements are estimated at $200 billion, according to a statement released by Afreximbank on Saturday.
Its creation comes as international financing for fossil fuel projects faces growing constraints, despite the continued importance of oil and gas to African economies and energy systems. The bank aims to mobilise capital to support projects that have struggled to secure funding from conventional financial institutions.
The formal establishment was confirmed at the bank’s inaugural general meeting in Abuja, Nigeria, where participants appointed Helmy Ghazi as its first president and constituted its inaugural board of directors.
With authorised capital of $5 billion, the institution will finance activities spanning the energy value chain, including oil and gas exploration, production, refining and distribution.
The initiative brings together Afreximbank, a pan-African multilateral financial institution, and APPO, which represents African oil-producing countries, in an effort to strengthen the continent’s capacity to finance its own energy development.
The bank’s establishment follows several years of preparations. Media reported in February 2025 that the institution was targeting a launch by the middle of that year, with South Africa expressing interest in joining despite not being a member of APPO.
Earlier media reporting also indicated that the bank was targeting an eventual asset base of $120 billion, significantly larger than its initial authorised capital.
The institution is expected to play a role in financing energy infrastructure and developing the continent’s oil and gas resources, although the announcement did not specify a timetable for reaching its investment or asset targets.
Its launch marks an effort by African financial institutions and energy-producing countries to create a dedicated financing mechanism at a time when access to international capital for fossil fuel development has become increasingly difficult.