Africa Energy Bank targets $120 billion in assets and plans to launch in the first quarter

The African Energy Bank (AEB), an ambitious initiative to finance oil and gas projects across the continent, is expected to begin operations by the first quarter of 2025. With a target of $120 billion in assets, this institution, the result of a partnership between the African Export-Import Bank (Afreximbank) and the African Petroleum Producers Organisation (APPO), is positioned as a key player in bridging the energy financing gap in Africa.

In a global context where environmental pressures are pushing major financial institutions to turn away from investments in fossil fuels, the creation of the African Energy Bank appears to be a strategic response to guarantee the continent's energy sovereignty. "The building is ready, and we are in the process of putting the finishing touches to it. By the end of this quarter, this bank will be up and running", said Heineken Lokpobiri, Nigeria's Minister of State for Petroleum Resources.

During his announcement, Mr Lokpobiri stressed the urgency of tackling the energy poverty that still affects millions of Africans. "If we fail to address this challenge, we risk leaving millions of people behind in the transition to cleaner energy", he warned. He also called for greater regional collaboration, investment in human capital and innovation to enable African nations to remain competitive on the world stage.

While acknowledging the global push for renewable energy, the Minister called for a balanced approach. "The global transition to cleaner energy is not a threat, it's an opportunity", he said. He outlined a two-pronged strategy: optimising hydrocarbon resources to diversify African economies, while investing in renewable energies to ensure long-term energy stability.

The African Energy Bank will not only finance oil and gas projects. It is also committed to supporting initiatives that directly benefit local communities. "Sustainability is not just about the environment; it's about our people. Host communities must benefit, and our children must inherit an industry that prioritises education, healthcare and infrastructure," explained Mr Lokpobiri.

This holistic vision of sustainable development is part of a rationale of social and economic responsibility. By taking control of its energy financing, Africa intends to reduce its dependence on foreign capital and external policies that do not always correspond to its development priorities. "The African Energy Bank represents a turning point towards financial autonomy", he added. "It allows us to free ourselves from dependence on foreign capital and external policies that do not correspond to Africa's development priorities.

Nigeria, Africa's leading oil producer, is playing a central role in the creation of this institution. As a founding member of the APPO and a key partner of Afreximbank, the country has brought its expertise and leadership to bear in bringing this project to fruition. This initiative is part of a wider drive to strengthen the continent's economic and energy integration.

As the African Energy Bank prepares to start operations, a number of challenges remain. These include the need to ensure transparent governance, mobilise additional funds from international markets and ensure that the projects financed meet the highest environmental and social standards.

However, the outlook is promising. By combining the financing of fossil fuels with investment in renewable energies, the African Energy Bank could become a model for inclusive and sustainable energy transition. It offers the continent a unique opportunity to take control of its energy destiny while meeting the immediate needs of its people.