Nigeria, Angola and Ghana support the growth of the African Energy Bank with capital injections

In a major development for Africa's energy sector, three of the continent's oil heavyweights - Nigeria, Angola and Ghana - have honoured their financial commitments to the African Energy Bank (AEB). This milestone marks a crucial step in the implementation of this novel financial institution, designed to catalyse investment in oil and gas projects in Africa. With these contributions, the three countries now represent 44% of the minimum financing required by the African Petroleum Producers Organisation (APPO) to launch the operations of the AfDB.

Announced at the Energy and Investment Forum in Congo last week, the move was hailed by APPO Secretary General Dr Omar Farouk Ibrahim as a "historic achievement" for Africa's energy sector. The Bank aims to fill the financing gap exacerbated by the growing reluctance of traditional Western financial institutions to support fossil fuel initiatives, often criticised for their environmental impact.

The APPO has asked each of its 18 member states for an initial contribution of $83 million, with a view to achieving a total capitalisation of $5 billion. In addition to Nigeria, Angola and Ghana, five other member states - Algeria, Benin, the Republic of Congo, Equatorial Guinea and Côte d'Ivoire - have also confirmed their financial commitments. The aim is for the BAE to begin operations in the first half of 2025.

As the largest oil producer in sub-Saharan Africa, Nigeria plays a central role in the continent's energy dynamic. The country offers significant investment opportunities thanks to the implementation of the Petroleum Industry Act, which introduces regulatory reforms aimed at improving transparency and attracting foreign capital. Flagship projects include TotalEnergies' Ubeta gas field development ($550 million) and Shell's Bonga Nord project ($5 billion).

However, additional funding remains essential to unlock the full potential of Nigeria's gas programme, which could play a key role in the continent's energy transition. The EBA should help mobilise the resources needed to accelerate these strategic projects.

Angola, meanwhile, is actively diversifying its energy portfolio while making progress on deepwater offshore projects. Emblematic initiatives include TotalEnergies' $6 billion Kaminho Deepwater project, Eni's Agogo integrated western hub, and the development of the country's first green hydrogen project. The latter, worth 600 MW, is being led by Sonangol in collaboration with international partners, with a final investment decision expected by 2025.

Angola is also making progress in monetising its natural gas with the New Gas Consortium and a $12 billion expansion of the Angola LNG plant. These projects illustrate the country's ambition to maximise the value of its resources while contributing to regional energy security.

Ghana is strengthening its position as a major player on the oil and gas scene thanks to new strategic partnerships. Last March, Eni and the Ghana National Petroleum Corporation signed an agreement aimed at stepping up offshore exploration, optimising existing assets and developing unexploited reserves. These efforts are part of regulatory reforms aimed at improving fiscal conditions and stimulating investment.

Tullow Oil remains a pillar of Ghana's energy sector, with production from the Jubilee and TEN fields underpinning the country's economic growth. A drilling programme scheduled for May 2025 aims to increase production and maximise revenues. At the same time, Ghana is diversifying its energy sources, investing in renewable energies to ensure sustainable energy security.

The creation of the BAE represents a strategic response to the continent's specific energy financing needs. By offering solutions tailored to the African context, the Bank aims to accelerate the development of oil and gas projects, enhance energy security and stimulate economic growth. With an increasing number of countries contributing to its capital, the AfDB is set to play a crucial role in unlocking investment and reducing financing gaps.

African Energy Week (AEW) 2025, to be held from 29 September to 3 October in Cape Town, will provide a key platform to discuss the BAE's role in mobilising capital and promoting an inclusive energy transition. Sessions will address strategic themes such as downstream infrastructure, energy transition and technological innovation. A specific session will be dedicated to the latest news from the BAE, offering stakeholders the opportunity to share ideas and define strategies to overcome barriers to accessing capital.

With the firm commitment of Nigeria, Angola and Ghana, the African Energy Bank is gaining momentum as a key institution for the continent's energy future. By catalysing investment and supporting sustainable projects, it could transform Africa's energy landscape and ensure inclusive growth for future generations.