KEY POINTS
• $10B first phase funding targets oil and gas projects
• Nigeria, Angola and Libya are named priority countries
• Bank aims to close the financing gap left by global lenders
The African Energy Bank has launched $10 billion in first phase funding aimed at supporting oil and gas projects across the continent, marking its first operational step since its formation.
The funding will focus on Nigeria, Angola and Libya. These countries are among Africa’s largest oil producers but have faced limited access to investment capital in recent years.
The multilateral bank was established through a partnership between the African Petroleum Producers’ Organisation and the African Export Import Bank. It was created to address a growing financing gap as Western lenders and development institutions scale back support for fossil fuel projects.
First phase funding targets core infrastructure
The bank said funds will be directed toward exploration, pipelines, storage facilities, refineries and distribution networks. Officials described the initiative as essential to maintaining energy production and infrastructure across key markets.
The $10 billion allocation represents the first phase of a longer term plan. The institution aims to mobilise larger pools of capital over time by using public funds to attract private and institutional investors.
Projections indicate the initiative could unlock more than $200 billion in energy investment by 2030.
Africa seeks independent financing
Global capital flows into hydrocarbon projects have tightened as climate commitments reshape lending policies. Several international financial institutions have reduced exposure to oil and gas developments.
African leaders have argued that hydrocarbons remain central to economic stability and development. Energy exports account for a large share of public revenue in countries such as Nigeria and Angola.
The new bank is intended to give African producers greater control over how their energy resources are financed. Officials say the approach will help secure energy supply while protecting economic growth.
Energy access and economic growth at stake
Energy access remains limited across much of the continent. More than 600 million people in Africa lack reliable electricity.
Underinvestment and aging infrastructure have slowed production growth in some oil producing nations. Limited capital has also constrained new exploration and refining capacity.
The African Energy Bank says its funding model will support both hydrocarbons and energy transition initiatives. Oil and gas are expected to remain the primary focus in the early phases.
The rollout of the first $10 billion signals a shift in how African energy projects may be financed. It reflects an effort to build long term funding structures that align with the continent’s development priorities while navigating global energy transitions.
