Coalition of African oil-producing nations seeking to raise $5 billion to create an “Energy Bank”

A coalition of African oil-producing nations is working to secure US$5 billion to establish an “energy bank” dedicated to financing energy projects across the continent. This initiative reflects growing frustration with Western institutions’ reluctance to back fossil fuel projects due to environmental concerns.

The African Petroleum Producers’ Organization, which includes 18 countries, aims to launch the bank by early 2025, according to Haytham El Maayergi, executive vice-president of global trade at the African Export-Import Bank, a key partner in the initiative. African oil producers have struggled to obtain funding from traditional Western investors, including multilateral organizations that are increasingly pulling back from oil and gas investments.

For instance, the World Bank stopped funding upstream oil and gas projects in 2019, and the African Development Bank similarly avoids fossil fuel investments.

El Maayergi emphasized that “Africa’s context is entirely different from what you find elsewhere,” noting that the continent’s resources remain largely untapped and its contribution to global emissions is minimal. He added, “These are countries at a development stage where an immediate shift to green energy isn’t feasible; you can’t simply withdraw funding and expect them to abandon oil.”