A bank set up to fund Africa’s energy aspirations is to be based in Abuja, Nigeria.

A joint venture between the African Petroleum Producers Organisation (APPO) and Afreximbank, the African Energy Bank (AEB) will have a fund of US$5 billion when it opens for business later this year, according to Reuters.

While APPO member states are required to invest just over US$83 million in the bank, Nigeria’s President Bola Tinubu approved a US$100 million investment in May.

Nigeria beat out Ghana, Algeria, Benin, Côte d’Ivoire and South Africa to host the AEB headquarters.

The bank was formally established and its charter was signed in Egypt on 4 June 2024.

ESI Africa reports that the primary aim of the AEB is to address the funding crisis facing the continent’s oil and gas industry as a result of the transition away from traditional fossil fuels. However, the bank will be open to investing in all forms of energy, including renewables

9 July 2024
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