Africa Energy Bank Set for H1 2025 Launch.

Sunday, 30th March 2025

By inAfrika Reporter

Backed by leading African economies and a $5 billion capital pool, the bank aims to address long-standing financing, technology, and market barriers in Africa’s energy sector.

Brazzaville, Republic of Congo, The Africa Energy Bank, a groundbreaking initiative jointly established by the African Petroleum Producers Organization (APPO) and Afreximbank, is gearing up for its official launch in the first half of 2025. The bank is expected to become a cornerstone for financing Africa’s oil and gas projects, addressing key challenges that have hindered the sector’s full potential.

Announced at the Congo Energy & Investment Forum in Brazzaville, the bank will be capitalized at $5 billion, with $1.5 billion set aside for APPO member states. It will provide financing for upstream and midstream oil and gas projects, engage in commodity trading, and manage risk—all with the goal of enhancing energy independence across the continent.

Speaking at the Forum, Dr. Omar Farouk Ibrahim, Secretary General of APPO, emphasized the importance of urgent and African-led solutions. “We should not rest and wait for other countries to develop our own projects,” he said. “At APPO, we have identified three key challenges: finance, technology, and reliable markets. The Africa Energy Bank is a direct response to those issues.”

Countries such as Nigeria, Angola, Ghana, and the Republic of Congo have thrown their support behind the bank. The Republic of Congo, in particular, has demonstrated strong commitment by acquiring $83.33 million in shares.

The creation of the bank comes at a time when many African oil producers struggle to access capital due to shifting global energy investment trends, including reduced appetite for fossil fuel projects among international financiers. In response, the Africa Energy Bank is positioning itself as a pan-African solution to bolster local project financing and technical autonomy.

By focusing on Africa’s unique development needs and energy realities, the bank also aims to accelerate industrialization and job creation, while reinforcing the continent’s role in the global energy supply chain.

The partnership between Afreximbank and APPO provides both financial expertise and sectoral insight. Afreximbank brings its experience in structuring trade and project finance across Africa, while APPO ensures alignment with the priorities of the continent’s oil-producing nations.

With the launch approaching, expectations are high that the Africa Energy Bank will redefine the future of energy financing in Africa—by Africans, for Africans.