Africa Energy Bank secures key share capital financing

• The trio’s capital boost represent 44% of the minimum funds required from oil producing countries in Africa.
• Africa Energy Bank seeks to fund oil and gas projects across economies in Africa, plugging gaps that exists through the continent’s overreliance on financiers from the West.
• Quite often, financiers from the west are reluctance to pump billions in fossil fuel projects in Africa citing environmental concerns.

The push to better finance capital intensive projects in Africa has received a boost after Nigeria, Angola and Ghana contributed their capital shares to the Africa Energy Bank. In an update on Wednesday, the African Petroleum Producers Organization (APPO) said the trio’s contributions represent 44 per cent of the minimum capital that is required from oil producing countries in the continent.

According to APPO Secretary General Dr. Omar Farouk, the Africa Energy Bank seeks to fund oil and gas projects across economies in Africa, helping to plug critical financing gaps that exists through the continent’s overreliance on financiers from the West.

Dr. Omar noted that quite often financiers from western countries are reluctance to pump billions in fossil fuel projects in Africa citing environmental concerns. To counter this challenge, APPO urged each of its dozen-and-a-half members to raise $83 million with an objective of raising $5 billion capital for the establishment of the Africa Energy Bank.

Other than Nigeria, Angola and Ghana, five other oil producing countries including Algeria, Benin, the Republic of Congo, Equatorial Guinea and Ivory Coast have pledged to make their share capital contributions, aligning with the bank’s goal to begin operations by June 2025.

Energy titans forge divergent paths to growth and why Africa Energy Bank is vital
Across sub-Saharan Africa, three energy titans are charting distinct courses to secure their positions in an evolving global energy market. Nigeria, Angola and Ghana – each with unique advantages and challenges – are demonstrating how hydrocarbon wealth and energy transition ambitions can coexist in developing economies.

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Nigeria’s oil renaissance and gas ambition

The scent of reform hangs thick over Nigeria’s petroleum industry. As Africa’s largest oil producer shakes off years of regulatory uncertainty, the implementation of its landmark Petroleum Industry Act has begun bearing fruit. The legislation’s emphasis on transparency and investor-friendly terms comes at a critical juncture, with the country preparing for a major 2025 licensing round that could redefine its energy landscape.
Recent months have seen a flurry of activity suggesting renewed international confidence.

TotalEnergies’ commitment to develop the Ubeta gas field represents more than just a $550 million investment – it signals belief in Nigeria’s potential as a gas supplier to both domestic industries and global markets. Similarly, Shell’s greenlighting of the massive Bonga North project underscores Nigeria’s enduring appeal for deepwater development.
Yet beneath these headline figures lies a pressing challenge: financing.

Industry analysts note that while these projects mark important steps, Nigeria must attract significantly more capital to realize its vision of becoming a gas-powered economy while maintaining oil output. The coming bid round will serve as a crucial test of whether the PIA’s reforms have truly moved the needle for international investors.
Angola’s two-pronged energy revolution

To the south, Angola is executing a delicate balancing act. While pouring billions into maintaining its position as Africa’s second-largest oil producer, the country is simultaneously laying groundwork for an energy future that looks radically different from its past.

The $6 billion Kaminho deepwater development and Eni’s Agogo West Hub project demonstrate Angola’s commitment to maintaining production levels even as existing fields mature. These projects form part of a broader strategy to push output toward 2 million barrels per day – an ambitious target that would require both technological innovation and sustained investment.

But Angola’s energy narrative is no longer solely written in crude. The country is poised to make history with its first green hydrogen project, a 600MW facility that could receive final approval as early as next year. This initiative, led by national oil company Sonangol in partnership with foreign investors, represents a bold step into renewable energy for a nation long dependent on hydrocarbons.

Equally transformative is Angola’s gas strategy. The New Gas Consortium marks the country’s first major foray into non-associated gas production, while a $12 billion expansion of the Angola LNG plant will significantly boost export capacity. Together, these projects suggest Angola is serious about monetizing gas reserves that were once considered mere byproducts of oil extraction.

Ghana’s careful balancing act

Smaller but strategically important, Ghana continues to punch above its weight in Africa’s energy sector. The recent agreement between Eni and the Ghana National Petroleum Corporation reflects a shared vision for optimizing existing assets while exploring new frontiers. This partnership model – combining international expertise with national oversight – could serve as a template for other African producers seeking to maximize resource benefits.

Tullow Oil’s planned 2025 drilling campaign at the Jubilee and TEN fields underscores Ghana’s pragmatic approach. Rather than chasing spectacular new discoveries, the focus remains on steady production growth through efficient exploitation of known resources. This measured strategy provides revenue stability while Ghana quietly develops the regulatory and physical infrastructure needed for energy transition.

The country’s gradual shift toward renewables and energy access expansion suggests a long-term vision that many larger producers would do well to emulate. By modernizing infrastructure and improving investment terms now, Ghana positions itself to adapt as global energy markets evolve.

Africa Energy Bank

According to the African Energy Chamber, the set up of the Africa Energy Bank will be a strategic response to the continent’s need for dedicated financial institutions that understand the area’s unique energy challenges.

By offering tailored financing solutions to oil producers, the lender is poised to accelerate energy project development, enhance energy security and drive economic growth. As more countries contribute their capital shares, the bank is expected to play a pivotal role in unlocking investment, bridging financing gaps and ensuring sustainable energy expansion across Africa.

African Energy Week (AEW) 2025: Invest in African Energies, which is taking place from September 29 to October 3 in Cape Town, will serve as a vital platform to advance discussions on the new lender’s role in mobilizing investment and bridging financing gaps.

The forum is also expected to cover strategic topics including upstream oil and gas, downstream infrastructure, the energy transition and power industry developments. Notably, AEW 2025 will feature an energy finance stage dedicated to the latest updates from the AEB, investment trends and strategies to reduce barriers to capital access, ensuring that Africa’s energy sector is well-positioned for sustainable growth.