The $5 billion Africa Energy Bank (AEB) faces fresh uncertainty as slow capital mobilisation threatens its planned September 2025 launch. Officials warn that without the required funding, the bank’s long-awaited rollout could grind to a halt.
The AEB aims to close Africa’s growing financing gap for oil, gas, and energy projects, a void left by the withdrawal of many global lenders from fossil fuel investments. Its charter requires at least $1.25 billion in subscribed and paid-up shares from eligible investors before operations can start.
So far, Nigeria, Angola, and Ghana have met their capital commitments, covering 44% of the required minimum. In 2024, President Bola Tinubu approved Nigeria’s $100 million subscription for Class A shares. Algeria, Benin, the Republic of Congo, Equatorial Guinea, and the Ivory Coast have pledged funds, but full subscription remains pending.
Capital Deadlock Deepens
The funding shortfall is not just about delays in payment. A dispute between the African Petroleum Producers Organisation (APPO) and the African Export-Import Bank (Afreximbank) has stalled progress.
APPO refuses to release equity subscription funds from its escrow account until members agree on a launch date, select the headquarters, and appoint the bank’s president. Afreximbank insists the fund transfer must come first to confirm pioneer shareholders and hold the inaugural general meeting.
“Without the funds being paid into the AEB Equity Investment Account, we cannot confirm shareholders, elect a board, or appoint a president. Ultimately, there would be no Africa Energy Bank,”
— Haytham Elmaayergi, Afreximbank Executive Vice President
Timetable Under Pressure
Afreximbank’s revised timeline targeted shareholder ratifications and fund transfers in July 2025, a constituent assembly on August 18, and the inaugural general meeting on September 18. The bank planned to begin operations by September 30.
With the current impasse, these milestones may slip again. Afreximbank warns that further delays could damage the project’s credibility and discourage investors.
Years of Preparation at Risk
African oil producers have spent years developing the AEB to reduce reliance on foreign capital. The $5 billion capital base is intended to finance upstream, midstream, and downstream energy projects across the continent.
The bank already missed its original March 2025 launch date. With APPO Secretary-General Dr. Omar Farouk Ibrahim set to retire later this year, analysts caution that the project risks indefinite delay unless funding and governance issues are resolved quickly.
As of press time, APPO had not responded to Afreximbank’s latest warning.