The African Energy Bank, a new financial institution aimed at supporting the development of the continent's energy sector, has been officially established with a capital of $5 billion. The bank, created on October 31, 2026, in Abuja, Nigeria, is a joint initiative of the African Petroleum Producers Organization (APPO) and Afreximbank. The institution's primary goal is to provide financing for the entire value chain of the oil and gas industry, from exploration and production to refining, transportation, storage, and distribution.
Côte d'Ivoire, through its Minister of Mines, Oil, and Energy, Mamadou Sangafowa-Coulibaly, has played a strategic role in the creation of the African Energy Bank. As the current president of APPO, Sangafowa-Coulibaly was elected as the president of the bank's General Assembly for a one-year term. His election recognizes Côte d'Ivoire's diplomatic and institutional efforts in bringing the project to fruition. The General Assembly also established the bank's initial governance structures and appointed Helmy Ghazi, a former HSBC Egypt executive, as the bank's CEO.
The African Energy Bank aims to address the paradox of Africa's rich oil and gas resources, yet significant dependence on imported refined products. According to data presented by Sangafowa-Coulibaly, the continent imports around 70% of the petroleum products it consumes, while exporting nearly 75% of its crude oil production. The bank's goal is to contribute to the development of Africa's refining capacities, construction of storage and transportation infrastructure, and improvement of the distribution of energy products.
The creation of the African Energy Bank is a response to the crisis in energy financing faced by the continent. According to Georges Elombi, president of Afreximbank, the bank was born out of a crisis, with the goal of addressing the significant investment needs in Africa's energy sector, estimated at around $200 billion. The bank will provide financing for energy projects, helping to reduce the continent's dependence on external funding and accelerate the local transformation of its resources.
The African Energy Bank will focus on financing projects across the entire energy value chain, from exploration and production to refining, transportation, storage, and distribution. The bank's establishment is seen as a significant step towards Africa's energy sovereignty, enabling the continent to retain a larger share of the value added from its natural resources. The bank's operations will be crucial in addressing the energy needs of the continent, with nearly 600 million people still lacking access to electricity.
The process of creating the African Energy Bank began in May 2022, with the signing of a memorandum of understanding between APPO and Afreximbank. Since then, several steps have been taken to make the institution operational, including the mobilization of capital and the definition of its operational framework. The bank's creation is seen as a major milestone in Africa's strategy for energy sovereignty and economic development.
The African Energy Bank is expected to become a key financial partner for states, public enterprises, and private operators engaged in the development of energy infrastructure. With its $5 billion capital, the bank is poised to play a significant role in addressing the financing needs of Africa's energy sector, helping to drive economic growth and development across the continent.
Key points
- The African Energy Bank has been established with a capital of $5 billion to finance the continent's energy projects.
- Côte d'Ivoire has played a strategic role in the creation of the African Energy Bank, with Minister Mamadou Sangafowa-Coulibaly elected as president of the bank's General Assembly.
- The bank aims to address the paradox of Africa's dependence on imported refined products, despite its rich oil and gas resources.
