***Africa Energy Bank to start operations in October — Farouk By Udeme Akpan, Energy Editor Africa needs more than $200 billion annually in energy investment by 2030 to develop oil and gas, expand electricity generation and distribution, and grow clean energy, Chairman of the Independent Petroleum Producers Group (IPPG), Adegbite Falade, has said. Falade, who […] The post Africa needs $200bn yearly energy investment — IPPG appeared first on Vanguard News .
***Africa Energy Bank to start operations in October — Farouk
By Udeme Akpan, Energy Editor
Africa needs more than $200 billion annually in energy investment by 2030 to develop oil and gas, expand electricity generation and distribution, and grow clean energy, Chairman of the Independent Petroleum Producers Group (IPPG), Adegbite Falade, has said.
Falade, who spoke at the opening ceremony of the ongoing Africa Oil Week (AOW) in Accra, Ghana, yesterday, said Africa currently attracts just over half of the required investment, leaving a huge financing gap.
He noted that Africa, which accounts for about one-fifth of the world’s population, attracts only about three per cent of global energy investment.
“If Africa is to secure its energy future in an era of international capital retreat, we must look inward and build our own institutional and financial resilience,” Falade said.
He identified the Africa Energy Bank (AEB) as a key instrument for closing the financing gap, saying its establishment by the African Petroleum Producers Organisation (APPO) and Afreximbank was an important step towards financing the continent’s energy future from within.
The bank, headquartered in Abuja, has an initial capital base of $5 billion, with plans to mobilise $10 billion in its first phase and grow towards $15 billion by 2030.
“The AEB is purpose-built to bridge the upstream and midstream financing gap left by traditional global financiers,” Falade said.
“This is Africa’s clearest statement yet that we intend to finance our own hydrocarbon future, rather than wait indefinitely for others to do so,” he added.
Falade, however, stressed that African producers must develop viable projects capable of attracting funding.
“It is imperative African producers actively originate high-impact, bankable projects,” he said, adding that “an institution built to finance Africa’s energy future is only as useful as the pipeline of investable projects our industry puts in front of it.”
Falade also called for increased investment in gas infrastructure, warning that Africa’s vast reserves would remain underutilised without adequate pipelines and processing facilities.
“Today, natural gas already generates around 40 per cent of this continent’s electricity,” he said.
He noted that Europe has more than 200,000 kilometres of interconnected oil and gas trunk pipelines, compared with less than 50,000 kilometres in Africa, despite Africa being three times larger geographically and having twice Europe’s population.
“This scale of infrastructure cannot sustainably or impactfully monetise our 620 trillion cubic feet of proven gas reserves,” Falade said.
“Reserves without pipelines are simply stranded molecules benefiting no one.”
He urged African governments and investors to treat pipelines, power grids and export facilities as strategic continental assets.
“Every conversation in this hall about upstream investment must therefore be paired with an equally serious commitment to midstream infrastructure,” he said.
Meanwhile, former Secretary-General of APPO, Dr. Omar Farouk, said the Africa Energy Bank is expected to commence operations in October 2026.
Speaking during a panel session on funding, Farouk said the bank had overcome major hurdles, including shareholder agreements, establishment of its headquarters and financial commitments.
“The financial institution has passed through a lot of hurdles. Everything is looking up now. Consultations are currently ongoing to recruit key personnel and board members,” he said.
“All hurdles have been overcome and I can confidently say that the bank has come close to starting operations,” Farouk added.
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