In a major breakthrough for Africa’s energy future, Nigeria, Angola and Ghana have fully honoured their capital commitments to the Africa Energy Bank (AEB), marking a significant step forward in launching the continent’s first pan-African oil and gas financing institution.
The announcement was made by Dr Omar Farouk Ibrahim, Secretary General of the African Petroleum Producers Organisation (APPO), at the Congo Energy & Investment Forum last week. This progress means that 44 percent of the required capital from APPO member states has now been secured, bringing the AEB closer to becoming operational in the first half of 2025.
A game-changer for Africa’s oil and gas projects
The AEB is being established to address the continent’s longstanding energy funding gap, especially as many Western financial institutions reduce support for fossil fuel projects over climate concerns. APPO has called on its 18 member countries to each contribute $83 million, with a goal of reaching $5 billion in initial capitalisation.
So far, eight countries – Nigeria, Angola, Ghana, Algeria, Benin, the Republic of Congo, Equatorial Guinea and Cote d’Ivoire – have either completed or committed to their contributions. These early backers are setting the stage for a financial institution designed specifically to support Africa’s unique energy development challenges and opportunities.
Nigeria leads with reforms and investments
Nigeria, as sub-Saharan Africa’s top oil producer, continues to attract investment into its oil and gas industry. The implementation of the Petroleum Industry Act has improved regulatory clarity, boosting investor confidence. Major developments are already underway, such as TotalEnergies’ $550 million Ubeta Gas Field project and Shell’s $5 billion Bonga North Project.
However, the AEB is expected to play a crucial role in ensuring Nigeria’s broader gas ambitions – including upcoming projects and the 2025 bid round – receive adequate financing to drive sustainable development and energy transition.
Angola eyes green hydrogen and gas monetisation
Angola is not just expanding deepwater oil production through projects like TotalEnergies’ $6bn Kaminho development and Eni’s Agogo West Hub – it is also moving ahead with cleaner energy initiatives. A final investment decision on Angola’s first green hydrogen project is expected in 2025. The 600 MW development is led by state energy firm Sonangol alongside global partners.
At the same time, Angola is pushing forward with its first non-associated gas project via the New Gas Consortium and a $12 billion expansion of its LNG infrastructure, aiming to double down on gas monetisation and diversify its energy exports.
Ghana pushes offshore potential and renewables
Ghana is strengthening its oil and gas position through strategic alliances and reforms. A recent agreement between Eni and the Ghana National Petroleum Corporation aims to explore new offshore blocks and boost recovery from existing fields. Tullow Oil is also expanding operations, with a new drilling campaign scheduled for May 2025.
The country is also looking beyond hydrocarbons. Efforts are underway to modernise infrastructure and boost renewable energy access, laying the groundwork for long-term energy security and economic resilience.
AEB to take centre stage at African Energy Week
The growing momentum around the AEB will be a key theme at African Energy Week (AEW) 2025, to be held in Cape Town from September 29 to October 3. A dedicated energy finance stage will spotlight the AEB’s progress, funding mechanisms and strategies to unlock capital for Africa’s vast energy potential.
As more countries fulfil their financial commitments, the AEB is emerging as a vital institution capable of transforming the continent’s energy landscape. With tailored financing solutions and regional backing, the bank is poised to accelerate energy investments, drive growth, and help Africa navigate the global energy transition on its own terms. (Africabriefing)
