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Frequently Asked Qustions

What is the Africa Energy Bank (AEB)?

AEB is a pan-African multilateral development bank dedicated to financing Africa’s energy value-chain—upstream, midstream, downstream and emerging low-carbon solutions. It was conceived by the African Petroleum Producers’ Organisation (APPO) in partnership with Afreximbank to narrow the continent’s estimated US $190 billion annual energy‑investment gap.

Global capital for oil, gas and critical‑minerals projects is shrinking under stricter ESG mandates. AEB pools African and strategic partner capital so the continent can self‑fund energy security, industrialisation and a just energy transition on its own terms.

The sponsors are APPO—representing 18 petroleum‑producing member states—and Afreximbank, Africa’s leading trade‑finance institution. Both co‑signed the Establishment Agreement and Bank Charter on 4 June 2024.

Abuja, Federal Republic of Nigeria. Nigeria secured hosting rights in July 2024.

Initial subscribed capital is US $5 billion, rising to a target asset base of US $120 billion within five years through callable capital, bond issuances and syndicated facilities.

  • Project & corporate loans
  • Equity & quasi‑equity
  • Guarantees & risk‑sharing instruments
  • Trade & supply‑chain finance
  • Green/transition bonds
  • Advisory & technical‑assistance grants.

Oil, gas and LNG infrastructure; refinery & petrochemical upgrades; power generation & transmission; carbon‑capture, methane abatement and gas‑to‑power; critical‑minerals extraction for energy technologies; and related midstream logistics.

Yes—particularly gas‑linked hybrid systems, geothermal, and large‑scale renewables that support reliable baseload or integrate with existing hydrocarbon assets, in line with a pragmatic transition.

Sovereign, sub‑sovereign and state‑owned entities; private‑sector sponsors incorporated in an African Union member state; and joint ventures that include a qualifying African partner.

AEB is energy‑sector specific with a mandate to support hydrocarbon and energy‑transition assets few other multilaterals currently fund, while still meeting international ESG standards.

Prospective states sign the Establishment Agreement, lodge their Instrument of Ratification, and pay the minimum subscription in two tranches (30 % paid‑in, 70 % callable).

Vacancies will be posted on the Careers page once recruitment begins

The AEB aims to fill the funding gap created by the resolve of the traditional financiers of oil and gas projects in Africa, ostensibly in support of energy transition, to end financing oil and gas projects on the continent.

Africa requires a balanced energy mix to meet its growing energy demand and achieve long-term energy security.

The AEB’s mission is to harness all forms of energy to eradicate energy poverty in Africa, support economic growth, and foster sustainable development. While the primary focus will be on funding oil and gas projects, the AEB is also dedicated to supporting renewable energy initiatives, ensuring a balanced and inclusive energy transition.

⁠As any Financial institution, development or commercial, it will have its policies and credit processes defined which will respond to the question on how the AEB will select projects based on these processes. The extent at which AEB will be involved in the selection and implementation will be defined at that stage.

  •  ⁠The AEB’s mission is to harness all forms of energy to eradicate energy poverty in Africa, support economic growth, and foster sustainable development.
  • Part of this will involve addressing the funding crisis in the African oil and gas sector, triggered by the global shift towards renewable energy.
  • The African continent has the largest proportion of the world’s population living without access to modern energy.
  • ⁠There is a need to strike the right balance between the imperatives of climate change mitigation and the need to avoid social upheaval that could result from difficult economic and financial conditions in Africa.
  • With over 125 billion barrels of proven crude oil reserves and over 650 trillion cubic feet of proven gas reserves, Africa cannot afford to abandon its valuable energy resources prematurely.
  • The AEB will ensure that these resources are utilized effectively to support the continent’s development while also investing in renewable energy projects to promote a sustainable energy future.

⁠This orientation will be taken by the board of directors of AEB, based on the optimal impact environmental, economic and social for the continent.

  • The fundamental objective of the AEB is to support the continent’s development and prosperity, this is why it was formed.
  • The AEB will combine development financing from Afreximbank and APPO as well as private sector investments which will help the overall cost of financing. It reduces the debt burden while attracting private capital.

AEB as a bank will advocate for transparency in the oil sector while keeping in mind that its sole mission will be to support the continent’s energy sectors through financing.

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