African lenders launch a US$5 billion bank for oil and gas projects

Authorized capital

5 billion US$

The African Export-Import Bank and the African Petroleum Producers' Organisation formally set up the Africa Energy Bank, with authorized capital of US$5 billion, Afreximbank said Oct 31.

Why it matters

The bank aims to fill a financing gap as traditional lenders pull back from fossil fuels, while oil and gas remain central to Africa's energy systems.

Its first general meeting, in Abuja, Nigeria, named Helmy Ghazi as the bank's first president and formed its first board of directors.

What it will finance

• Exploration and production
• Refining
• Distribution

The bank will back projects across the energy chain, from exploration and production to refining and distribution, as Africa's energy investment needs are put at US$200 billion.