The African Energy Bank, scheduled to launch in Abuja during the first half of 2026, has announced an ambitious target to mobilize $200 billion for midstream and downstream energy projects across the African continent by 2030. Secretary General of the African Petroleum Producers’ Organisation Farid Ghezali revealed the groundbreaking initiative at the opening session of the Nigeria International Energy Summit 2026, outlining plans to raise $15 billion in just three years for funding strategic energy infrastructure projects.
Ghezali emphasized that the African Energy Bank is specifically designed to unlock the $200 billion needed for midstream and downstream development, addressing what he described as the main bottleneck facing continental energy development. The cost of financing in Africa currently stands at 15 to 20 percent, compared to only 4 to 6 percent in Asia, a disparity that Ghezali called unacceptable. This financing gap has stalled over 150 projects across the continent, including critical refineries and pipeline infrastructure such as the Ajaokuta-Kaduna-Kano pipeline.
The bank plans to list shares of national oil companies and key projects, including major assets such as the Dangote Refinery and strategic pipeline infrastructure. Ghezali highlighted that the institution will offer competitive regional pricing through unified intra-African gas and oil pricing, potentially delivering savings of up to 30 percent on energy imports and representing a potential gain of $1.4 billion for Africa. The bank will also provide direct access to investors for national oil companies that currently operate in isolation without a common stock exchange.
Ghezali outlined a three-phase roadmap for the African Energy Bank. Phase one, launching in the first half of 2026, will establish the bank platform with 10 pillar projects involving countries including Nigeria, Angola, and Libya, along with certification from the African Petroleum Producers’ Organisation and integration of international oil companies such as Shell and Eni. Phase two, planned for 2027, will initiate regional gas and oil trade while integrating principles of the Bassari Declaration for 15 percent local content. Phase three, reaching 2030, envisions the African Energy Bank as a true African financial hub with the full $200 billion mobilized.
The initiative addresses a critical challenge facing African energy development. Despite having a huge market for oil and gas utilization within the continent, Africa continues to export approximately 70 percent of its crude oil and 45 percent of its natural gas, losing $15 billion per year in added value that could be generated locally through midstream and downstream development. Expected results from the bank include project financing worth billions of dollars, regional savings of around 30 percent of import costs, and the creation of 500,000 direct jobs in the local midstream sector.
At the summit, Ghezali proposed sealing an Abuja Pact, describing it as a collective commitment to launch and energize the African Energy Bank by May 2026. He cited Nigeria’s Nigerian Content Development and Monitoring Board as concrete proof that the project can attract both local and international investors, noting the board’s success in securing $5 billion in local contracts through partnerships with international oil companies. Headquartered in Brazzaville, Republic of the Congo, the African Petroleum Producers’ Organisation serves 18 African oil-producing member countries and promotes cooperation in petroleum exploration, production, refining, and technology sharing to enhance energy security and economic development across the continent.
Source: allafrica.com via leadership.ng