The new pan-African financial institution, with a authorised capital of $5 billion, is designed to finance the continent’s energy projects against a backdrop of reduced access to traditional international financing for the oil and gas sector, according to an official statement from APPO and Afreximbank.
What projects will the new bank finance?
The establishment of the bank was announced on 31 October 2026 at the first general meeting in Abuja, the capital of Nigeria. According to an official statement from APPO, published jointly with Afreximbank, the institution will operate as an independent, supranational pan-African financial organisation.
The bank intends to support projects at all stages of the energy value chain: from the exploration and production of hydrocarbons to the transport, processing, refining and distribution of energy resources.
Among its stated objectives are expanding the production capacity of African countries, reducing dependence on imported petroleum products and developing intra-regional trade in energy commodities.
It is anticipated that funding will be raised from governments, national oil companies, financial institutions and private investors.
Africa’s energy needs are estimated at $200 billion
The bank is being established at a time when the African continent’s energy investment needs are estimated at approximately $200 billion. According to the founders, traditional international lenders are scaling back funding for fossil fuel projects, even though oil and gas continue to play a significant role in the energy systems of African countries.
The new institution is intended to help bridge this capital gap. Its mandate covers not only the oil and gas sector but also the wider range of energy projects.
At the first general meeting, it was decided to appoint Helmi Ghazzi of Egypt as the bank’s first president. An initial board of directors has also been formed, comprising representatives from the public and private sectors, as well as relevant political institutions in African countries.
According to the industry publication bne IntelliNews, the bank is expected to commence operations on 4 January 2027, with funding for the first projects planned for 2027.
This story was translated with the assistance of artificial intelligence.The translation was also reviewed by the Logos Press editorial team.
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