AEB launch eyes US$10bn funding
Newly established African Energy Bank could mobilise more than US$10bn to develop strategic energy projects across the continent with an initial phase eyeing projects in Nigeria, Angola and Libya, according to reports.
The pan-African project will target upstream, midstream and downstream developments and is expected to revive stalled projects, attract global investment and enhance regional self-sufficiency.
It comes after the Nigerian government formally handed over the headquarters of the AEB this week at a ceremony at the Nigeria International Energy Summit in Abuja. The exact location of the bank's headquarters was not disclosed.
African Petroleum Producers’ Organization secretary general, Farid Ghezali said the project could see involvement from oil majors Shell and Eni.
The project’s second phase, expected in 2027, targets the development of a regional gas trading hub and investment of around US$15bn, while its third phase in 2030 would unlock US$212bn in financing as the project matures into a financial hub supporting energy transition, Ghezali said.
Fundraising and liquidity could be raised by listing shares of national energy companies, though securing financing remains a challenge for Africa, with borrowing costs ranging from 15% to 20% compared with 4% to 6% in Asia, he said.
AEB, founded in June 2024 by the African Export-Import Bank and APPO, is set for an official launch in June, according to the African Energy Council.
The bank was established to mobilise African capital for energy infrastructure and reduce reliance on external financing.
