The push to better finance capital-intensive projects in Africa has been fueled by contributions from Nigeria and Ghana to the African Energy Bank, and to a lesser extent, Angola. In an update released Wednesday, the African Petroleum Producers Organization (APPO) indicates that the contributions from these three countries represent 44% of the minimum capital requirement for oil-producing countries on the continent.
Fundraising for the African Energy Bank
According to APPO Secretary General Dr. Omar Farouk, the African Energy Bank seeks to finance oil and gas projects in African economies. This will help fill critical financing gaps that exist due to the continent’s overreliance on Western financiers.
Dr. Omar noted that Western financiers are often hesitant to invest billions in fossil fuel projects in Africa, citing environmental concerns. To address this challenge, APPO is urging each of its twelve members to raise 83 million USD, including 5 billion USD in capital for the establishment of the African Energy Bank.
Energy giants step up
In addition to Nigeria, Angola, and Ghana, five other oil-producing countries, including Algeria, Benin, the Republic of Congo, Equatorial Guinea, and Côte d’Ivoire, have pledged. These nations are eager to contribute to the capital stock, in line with the bank’s goal of commencing operations by June 2025.
In sub-Saharan Africa, three energy giants are charting distinct paths to consolidate their positions in a rapidly evolving global energy market. Nigeria, Angola, and Ghana, each with unique advantages and challenges, demonstrate how hydrocarbon wealth and energy transition ambitions can coexist in developing economies.
Nigeria’s Oil Renaissance and Gas Ambition
The scent of reform hangs over the Nigerian oil industry. As Africa’s largest oil producer recovers from years of regulatory uncertainty, the implementation of its landmark Petroleum Industry Act is beginning to bear fruit. The law’s emphasis on transparency and investor-friendly conditions comes at a crucial time, as the country prepares for a major licensing round in 2025 that could redefine its energy landscape.
TotalEnergies’ commitment to the development of the Ubeta gas field represents more than just a 550 million USD investment. It demonstrates confidence in Nigeria’s potential as a gas supplier, both to domestic industries and global markets. Similarly, Shell’s green light for the massive Bonga North project underscores Nigeria’s enduring appeal for deepwater development.
Ghana’s Delicate Balancing Act
A smaller but strategically important country, Ghana continues to hold significant sway in the African energy sector. The recent agreement between Eni and the Ghana National Petroleum Corporation reflects a shared vision to optimize existing assets while exploring new prospects. This partnership model, combining international expertise and national oversight, could serve other African producers seeking to maximize the benefits of their resources.
Tullow Oil’s planned 2025 drilling campaign on the Jubilee and TEN fields underscores Ghana’s pragmatic approach. Rather than seeking spectacular new discoveries, the focus remains on steady production growth through efficient exploitation of known resources. This measured strategy ensures revenue stability while Ghana quietly develops the regulatory and physical infrastructure necessary for the energy transition.
African Energy Bank
According to the African Energy Chamber, the creation of the African Energy Bank will be a strategic response to the continent’s need for dedicated financial institutions that understand the region’s unique energy challenges.
By providing tailored financing solutions to oil producers, the lender is able to accelerate the development of energy projects, strengthen energy security, and stimulate economic growth. With the increasing number of countries contributing capital, the bank is expected to play a critical role in unlocking investment, closing financing gaps, and ensuring sustainable energy expansion in Africa.
Africa Energy Week (AEW) 2025: Investing in African Energy, taking place from September 29 to October 3 in Cape Town, will serve as a key platform to advance discussions on the new lender’s role in mobilizing investment and closing financing gaps.
