African institutions launch energy bank to finance oil and gas projects

Afreximbank and the African Petroleum Producers' Organization formally established the Africa Energy Bank at an inaugural general meeting in Abuja on October 31. Oilprice and IntelliNews reported that the new institution aims to support oil and gas developments across the continent. The launch follows work by the two institutions over four years. [1][5][6]

The Africa Energy Bank has been established with five billion dollars in authorised capital, according to reports from Business Insider Africa, IntelliNews, megaproject.com, and Financial Nigeria. The institution intends to address funding shortfalls caused by Western banks and development lenders restricting fossil fuel capital under climate commitments. [1][4][5][6][7]

The continent of Africa covers roughly 30.3 million square kilometres and represents around 20 percent of the land area of Earth. IntelliNews reported that the Africa Energy Bank expects to issue its first project financing in 2027. [5][8]