Africa has launched its own oil bank to finance oil and gas projects that Western banks and development lenders have dropped due to climate commitments. The Africa Energy Bank (AEB) was formally established at its inaugural general meeting in Abuja on October 31, with Afreximbank and the African Petroleum Producers’ Organization (APPO) as its founding institutions.
The AEB’s establishment comes after more than four years of work on the project, which was initially scheduled to be completed 20 months earlier. Abuja was chosen to host the bank, beating out bids from six other countries, including Ghana, Algeria, South Africa, and Benin.
Leadership and Mandate
The African Energy Bank (AEB) has appointed Helmy Ghazi, a former deputy CEO of HSBC Bank Egypt, as its inaugural leader. The bank’s governing body will include representatives from government agencies, private companies, and policy-making organizations. Its responsibilities span the full energy lifecycle, from drilling and extraction to transportation, refining, and electricity generation—including cross-border pipelines, regional refineries, and grid infrastructure.
The AEB has been allocated $5 billion in authorized capital, though only $500 million has been secured to date. This sum includes a $222 million contribution from Afreximbank and an unspecified Nigerian pledge estimated between $100 million and $200 million.
Financing and Goals
Over its initial operational phase, the AEB intends to raise up to $10 billion in funding and expects to back at least three initiatives in 2027, prioritizing regional refineries and pipeline networks. Its creators seek to lessen Africa’s reliance on imported fuel, boost internal energy trade, and support a ‘just transition’ where local governments determine the shift’s pace.
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Africa needs an estimated $200 billion in energy investment, and roughly 600 million Africans still lack electricity. The continent received about $35 billion a year in energy finance from G20 countries and multilateral development banks between 2012 and 2021, according to a Carnegie report.
Private Investment and Climate Tech
Private money is flowing into African energy, but it is primarily going to clean power, not oil and gas. Climate tech startups raised about $1.2 billion in 2025, or 38% of all venture funding on the continent, according to Africa The Big Deal. Development lenders and commercial banks provided much of the money for clean energy, with more than two-thirds of 2025 energy funding coming as loans and structured facilities.
Kenya accounted for 29% of Africa’s startup funding last year, with a significant portion tied to climate-related ventures. Separately, Nigeria in September unveiled a $300 million fund for decentralized solar and off-grid power systems, supported by its sovereign wealth fund, Africa50, and SEforALL.
Chinese Investment and the Angola Model
China remains the dominant player in Africa’s energy and mining industries, supplying critical funding through state-backed loans, commercial credit, commodity-backed deals, and bundled project packages. Under the so-called Angola Model, Chinese institutions extend large loans for energy and infrastructure in return for extended access to resources like oil, copper, and strategic minerals.
Since 2000, China’s Export-Import Bank and China Development Bank have extended $182 billion in loans across Africa, primarily for energy projects. After peaking in the 2010s, these state lenders have increasingly focused on clean energy and mineral supply chains.
