The African Energy Bank was officially launched on October 31 in Abuja, Nigeria, with an authorized capital of $5 billion. The bank, promoted by Afreximbank and the Organization of African Petroleum Producing Countries (APPO), aims to finance energy projects across the continent. The bank's first president, Egyptian Helmy Ghazi, has been tasked with making the bank operational, attracting new capital, and initiating funding.
The bank's capital is authorized at $5 billion, but this amount has not been fully subscribed. The bank's charter required a minimum of $500 million in subscribed capital to commence operations. Nigeria, the host country, has already paid its share. The bank plans to raise funds from member countries, national oil companies, and private investors.
Algeria is one of the eight founding members of APPO, created in 1987 in Lagos. Algerian Farid Ghezali has been the organization's Secretary General since November 2025. Although Ghezali does not lead the new bank, the organization he heads is one of the two promoters. Algeria played an active role in the bank's launch, with Minister of State Mohamed Arkab leading the ministerial working group that finalized its creation.
Algeria had also expressed interest in hosting the bank's headquarters but ultimately lost to Nigeria. In June 2026, Ghezali stated that Algeria was among the first countries to commit to the project. An Algerian delegation participated in the bank's activation meeting in Abuja in February. However, the Algerian government's decree ratifying the bank and the amount of its capital participation remain to be officialized.
The idea for the African Energy Bank emerged after COP26, when several Western donors reduced their funding for oil and gas projects. APPO announced its intention to create the bank in May 2022, with Afreximbank. The two institutions signed the bank's charter in June 2024 in Cairo. The promoters estimate that the continent's energy investment needs are $200 billion.
The bank aims to help African countries exploit their resources without relying on external financing. It also seeks to support access to electricity and industrialization. The bank will finance projects across the energy chain, including exploration, production, transportation, processing, refining, and distribution. It will also support the continent's energy transition.
The bank's first funding projects have yet to be defined by its management and board of directors. For producing countries like Algeria, the bank offers a new African financing source. Algerian gas, in high demand in Europe, illustrates the strategic stakes of these investments.
Key points
- Algeria among founding members of African Energy Bank with $5 billion authorized capital
- Bank aims to finance energy projects across the continent
- Algeria played an active role in the bank's launch but its capital participation remains to be officialized
