Africa’s energy sector is facing a $200 billion investment requirement as traditional international financiers retreat from oil and gas projects, creating an opening for a new pan-African lender designed to keep capital flowing into the continent’s energy industry.

The $5 billion Africa Energy Bank (AEB) has now formally begun operations in Abuja, Nigeria, with Egyptian banker Helmy Ghazi appointed as its inaugural president and its first Board of Directors constituted.

The institution is jointly backed by the African Petroleum Producers’ Organisation (APPO) and the African Export-Import Bank (Afreximbank).

The bank’s launch comes as African governments seek financing for energy generation, transmission and industrial development while balancing the need to expand access to reliable power with the transition towards cleaner energy.

Its ability to mobilise capital will be critical to determining how much of the continent’s energy investment needs it can address.

Africa Energy Bank targets $200 billion investment shortfall

The Africa Energy Bank was formally established at its inaugural General Assembly on October 31, 2026, where resolutions approved Ghazi’s appointment and the constitution of its first Board of Directors.

The board includes representatives from the public and private sectors, alongside leading policy institutions across Africa, reflecting the bank’s pan-African mandate and its ambition to mobilise capital from multiple sources.

According to a joint statement by Afreximbank and APPO, the institution is being established against an estimated $200 billion in energy investment needs across the continent.

Traditional providers of short- and long-term financing have increasingly withdrawn funding from fossil fuel projects, even as oil and gas remain central to many African economies and their energy systems.

The bank aims to bridge that financing gap while supporting a just energy transition, with investments expected to cover energy development across the continent.

Its mandate also reflects the growing demand for electricity to support industrial expansion and emerging technologies, particularly artificial intelligence, which requires substantial energy generation and transmission capacity.

Afreximbank and APPO anchor $5 billion institution

The Africa Energy Bank is the brainchild of APPO and is jointly funded by Afreximbank, which has emerged as one of its major financial backers. In 2024, Afreximbank reportedly approved $1.7 billion for investment in the institution, a substantial commitment towards its planned $5 billion capital base.

The bank is expected to attract additional funding from African governments, national oil companies, financial institutions and private investors, positioning it as an independent, supranational financial institution dedicated to financing the continent’s energy sector.

APPO has 18 member countries, all of which are oil-producing, gas-producing or both, providing the institution with a network of energy-producing economies seeking greater access to development financing.

Nigeria was selected as the bank’s host country, with the Federal Government disclosing in 2024 that preparations to operationalise the institution in Abuja were progressing.

Helmy Ghazi takes charge of inaugural leadership

Ghazi brings more than 25 years of banking experience to the new institution, having most recently served as Deputy CEO and Managing Director, Head of Global Banking, at HSBC Bank Egypt.

He is recognised as one of Egypt’s leading bankers, with experience spanning international banking, customer relationships, market development, investment networks and risk management.

His appointment places an experienced international banking executive at the helm of an institution tasked with mobilising capital for one of Africa’s most capital-intensive sectors.

The bank’s next challenge will be translating its $5 billion funding ambition into financing for energy projects across a continent whose investment requirements are estimated at $200 billion.