The African Export-Import Bank (Afreximbank) and the African Petroleum Producers’ Organisation (APPO) have formalised the creation of the African Energy Bank, an institution with an authorised capital of $5 billion designed to finance energy projects across the continent.

According to a statement released by Afreximbank on Saturday (31), the institution aims to bridge the financing gap in Africa’s energy sector at a time when traditional lenders are scaling back support for fossil fuel projects, even as oil and natural gas continue to play a central role in the continent’s energy systems.

The bank’s inaugural General Assembly, held in Abuja, Nigeria, appointed Helmy Ghazi as the institution’s first president and constituted its inaugural Board of Directors.

The announcement noted that the continent’s energy sector investment needs are estimated at $200 billion.

The African Energy Bank is expected to finance projects across the full value chain of the sector, including oil and gas exploration and production, refining, and distribution.

In February 2025, Reuters reported that the institution intended to begin operations by mid-year. At the time, South Africa expressed interest in joining, despite not being a member of APPO.

The news agency also reported that the bank had set a target of reaching an asset base of $120 billion.