How a $120 billion energy plan puts Africa in control of its future

At the World Bank's International Development Association (IDA) summit in Nairobi, an ambitious initiative was highlighted: the launch of the Africa Energy Bank (AEB). With potential financing of $120 billion, this institution aims to give Africa back control of its energy destiny, by financing oil, gas and, ultimately, renewable energy projects. Faced with falling investment in fossil fuels and the challenges of debt, this project could redefine the continent's energy landscape.

Headquartered in Lagos, Nigeria, the AEB aims to fill the gap left by the gradual withdrawal of international funding for fossil fuels. While global climate policies are pushing for a green transition, many African countries remain dependent on oil and gas to meet their growing energy needs. "African leaders have the right to define their own energy policy", stressed a senior official at the summit, underlining the need for an approach tailored to local realities.

The $120 billion plan, backed by initial contributions from countries such as Nigeria and South Africa, as well as private partners, aims to finance major projects such as the Nigeria-Morocco gas pipeline and the exploitation of Mozambique's offshore reserves. In the longer term, the AEB plans to invest in renewable energies, aligning immediate economic priorities with sustainability objectives.

The creation of the AEB is a response to growing frustration with global financial institutions, often criticised for their strict conditions and reluctance to support fossil fuels. With a rapidly expanding population - expected to exceed 2.5 billion by 2050 - and exploding energy demand, Africa cannot afford to wait. The continent, rich in resources such as natural gas, sun and wind, sees this bank as a tool for mobilising domestic capital and reducing its dependence on foreign loans.

By 2023, investment in fossil fuels in Africa will have fallen by 20%, according to industry estimates, while renewable projects are struggling to attract sufficient funding. The AEB aims to reverse this trend by offering flexible financing and facilitating public-private partnerships.

While oil and gas dominate the programme in the short term, the AEB is not closing the door on green energy. Pilot projects in wind power in Kenya and solar power in Morocco could receive funding as early as 2027, marking a gradual transition towards a diversified energy mix. "It's about meeting today's needs while preparing for the future", explained an AEB representative, stressing the need for a pragmatic approach.

The strategy is nevertheless provoking debate. Some observers fear that the focus on fossil fuels will slow down the fight against climate change, while others welcome an initiative that gives Africa the means to achieve its ambitions.

Driven by a political will affirmed at the Nairobi summit, the Africa Energy Bank project is redrawing the contours of African energy autonomy. By mobilising 120 billion dollars over the next few decades, the AEB promises not only to secure access to energy for millions of Africans, but also to reposition the continent as a key player on the global energy scene. All that remains is to realise these ambitions against a backdrop of high debt and international pressure, a challenge that Africa seems ready to meet with determination.