Nigeria, Angola and Ghana have contributed their capital shares to the Africa Energy Bank (AEB), marking a step forward in efforts to increase energy financing across the continent. The three countries have collectively met 44% of the minimum capital requirement from African Petroleum Producers Organization (APPO) member states, enabling progress towards the bank’s operational launch.
The Secretary General of APPO, Dr. Omar Farouk Ibrahim, announced the update during the Congo Energy & Investment Forum last week. Each of the 18 APPO member states has been asked to contribute $83 million, with a total initial capital target of $5 billion for the AEB.
Beyond the three countries that have paid, five others – Algeria, Benin, Republic of Congo, Equatorial Guinea and Ivory Coast – have pledged to contribute their shares, supporting the bank’s plan to begin operations in the first half of 2025.
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AEB targets oil and gas financing in Africa
The Africa Energy Bank is designed to finance oil and gas projects across Africa. Its creation responds to funding gaps caused by Western financial institutions stepping back from fossil fuel investments due to environmental policies. The AEB aims to provide financing tailored to the continent’s energy needs, including oil and gas, while supporting a broader energy transition agenda.
By mobilising domestic and regional resources, the AEB intends to reduce barriers to capital access and enable project development in both established and emerging energy markets across Africa.
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Nigeria: reforms and investment drive
Nigeria, sub-Saharan Africa’s largest oil producer, continues to attract investment in oil and gas. The country is planning a bid round in 2025, supported by the Petroleum Industry Act, which introduced reforms to increase transparency and investor confidence.
Final investment decisions have been announced for major projects, including TotalEnergies’ $550 million Ubeta Gas Field Development and Shell’s $5 billion Bonga North Project. However, more funding is needed to advance gas-related projects and support Nigeria’s contribution to the energy transition.
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Angola: expanding production and green hydrogen plans
Angola is developing both traditional and renewable energy projects. The country is targeting a production capacity of 2 million barrels per day through major developments such as TotalEnergies’ $6 billion Kaminho Deepwater Project and Eni’s Agogo Integrated West Hub.
Angola also plans to make a final investment decision on its first green hydrogen project in 2025. The 600 MW initiative is led by Sonangol with support from international partners. Additionally, Angola is progressing with its first non-associated gas project and a $12 billion expansion of the Angola LNG plant.
Ghana: upstream growth and infrastructure upgrades
Ghana is building on its oil and gas activities with new agreements and infrastructure expansion. In March, Eni and the Ghana National Petroleum Corporation signed an agreement to improve offshore exploration and develop untapped reserves.
Tullow Oil remains active in Ghana, with production from the Jubilee and TEN fields and plans for a new drilling programme in May 2025. Ghana is also working to modernise energy infrastructure, increase access and expand its renewable energy capacity.
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AEB to feature prominently at African Energy Week 2025
The Africa Energy Bank will be a key topic at African Energy Week (AEW) 2025: Invest in African Energies, scheduled for 29 September to 3 October in Cape Town. The event will focus on upstream and downstream development, the energy transition, and power sector investment.
An energy finance stage at AEW 2025 will spotlight updates on the AEB, as well as investment trends and strategies to unlock capital. The conference aims to build momentum for initiatives like the AEB, supporting energy security and economic development across Africa.
As more countries contribute their capital shares, the AEB is expected to become a central institution for Africa’s energy sector, offering financing that matches the continent’s needs and priorities.
