Nigeria, Angola, and Ghana have made significant strides in the establishment of the Africa Energy Bank (AEB), a crucial development for the continent’s energy sector. These three countries have fulfilled their capital commitments, representing 44% of the minimum required funding from African Petroleum Producers Organization (APPO) members to kickstart the bank’s operations. Dr. Omar Farouk Ibrahim, Secretary General of APPO, made this announcement during the Congo Energy&Investment Forum last week.
The primary objective of the AEB is to finance oil and gas projects across Africa, addressing the funding challenges faced by traditional Western financial institutions that are hesitant to support fossil fuel initiatives due to environmental concerns. APPO has called upon each of its 18 member states to contribute $83 million, aiming for a total initial capitalization of $5 billion. In addition to Nigeria, Angola, and Ghana, five more member states – Algeria, Benin, the Republic of Congo, Equatorial Guinea, and Ivory Coast – have pledged their payments, aligning with the bank’s target to commence operations in the first half of 2025.
Nigeria, as sub-Saharan Africa’s largest oil producer, offers significant opportunities in the oil and gas sector, including a 2025 bid round. The implementation of the Petroleum Industry Act has introduced regulatory reforms to enhance transparency and attract investment, leading to recent final investment decisions (FIDs) such as TotalEnergies’ $550 million Ubeta Gas Field Development and Shell’s $5 billion Bonga North Project. However, additional financing is essential to advance Nigeria’s gas agenda and fully leverage its potential in the energy transition.
Angola is actively diversifying its energy portfolio while progressing with major deepwater developments, such as TotalEnergies’ $6 billion Kaminho Deepwater Project and Eni’s Agogo Integrated West Hub. The country also plans to make an FID on its first green hydrogen project by 2025, a 600 MW initiative led by Sonangol in collaboration with international partners. Additionally, Angola is spearheading its first non-associated gas project, the New Gas Consortium, and undertaking a $12 billion expansion of the Angola LNG plant to enhance its gas monetization efforts.
Ghana is solidifying its position as a key player in the oil and gas sector, with recent commitments from Eni and Tullow Oil. In March, Eni and the Ghana National Petroleum Corporation signed an agreement to improve offshore exploration, optimize existing assets, and develop untapped reserves. Tullow Oil is also integral to Ghana’s energy sector, with production from the Jubilee and TEN fields driving economic growth. The country is modernizing infrastructure, expanding energy access, and diversifying into renewables to bolster long-term energy security.
The establishment of the AEB is a strategic response to Africa’s need for dedicated financial institutions that understand the continent’s unique energy landscape. By offering tailored financing solutions, the Bank is poised to expedite energy project development, enhance energy security, and stimulate economic growth. As more countries contribute their capital shares, the bank is expected to play a pivotal role in attracting investment, closing financing gaps, and ensuring sustainable energy expansion across Africa.
With Nigeria, Angola, and Ghana fulfilling their capital commitments, the AEB is gaining momentum as a key financial institution for the continent’s energy future. African Energy Week (AEW) 2025: Invest in African Energies, scheduled from September 29 to October 3 in Cape Town, will serve as a crucial platform to advance discussions on the AEB’s role in mobilizing investment and bridging financing gaps. The conference will cover strategic topics including upstream oil and gas, downstream infrastructure, the energy transition, and power industry developments. AEW 2025 will feature an energy finance stage dedicated to the latest updates from the AEB, investment trends, and strategies to reduce barriers to capital access, ensuring that Africa’s energy sector is well-positioned for sustainable growth.
AEW: Invest in African Energies is the preferred platform for project operators, financiers, technology providers, and government stakeholders, serving as the official venue to finalize deals in African energy. For more information about this exciting event, visit www.AECWeek.com.
Distributed by APO Group on behalf of African Energy Chamber.
