A new bank has been established in Africa to finance oil and gas projects, filling a gap left by Western banks and development lenders that have retreated from the sector due to climate commitments. The Africa Energy Bank was launched by Afreximbank and the African Petroleum Producers' Organization at its inaugural general meeting in Abuja.
The bank's mandate covers the entire energy value chain, including exploration and production, transport, and power generation. The bank plans to fund at least three projects in 2027, starting with regional refineries and pipelines, and aims to cut Africa's dependence on imported petroleum products and expand intra-African energy trade.
Africa needs an estimated $200 billion in energy investment, with roughly 600 million Africans still lacking electricity. Private money is flowing into African energy, but it is primarily going to clean power, not oil and gas, with climate tech startups receiving significant funding.
China continues to dominate Africa's energy and mining sectors, providing much-needed capital through a combination of state policy banks, commercial loans, and resource-backed agreements.