By: African sustainability matters

The recent MSGBC Oil, Gas & Power 2025 conference in Dakar served as a launchpad for the operationalization of the $5 billion African Energy Bank (AEB), a landmark initiative aimed at reclaiming control over the financing of the continent's energy future. Jointly announced by the African Petroleum Producers’ Organization (APPO) and Afreximbank, the bank is designed to address the critical funding gap left by global lenders who are retreating from conventional energy projects, despite Africa's persistent energy poverty.

The AEB's mandate is to provide long-term capital for a balanced energy mix, including oil and gas exploration, pipeline infrastructure, refinery upgrades, and renewable energy systems. This responds to an urgent need: with roughly 600 million people in sub-Saharan Africa lacking electricity, and estimates suggesting $375 billion is required over the next decade to develop the continent's natural gas potential alone, traditional financing has proven insufficient.

The conference highlighted specific regional opportunities, such as Senegal and Mauritania's gas projects and Guinea-Conakry's presentation of 22 offshore blocks with promising geological parallels to major discoveries in Guyana. The AEB is positioned to fund the infrastructure linking these resources to power grids and industries, thereby supporting both immediate energy access and long-term industrialization.

Beyond hydrocarbons, the bank is seen as a tool for a pragmatic dual-track strategy, enabling investments in projects like Mauritania's massive AMAN green hydrogen initiative while simultaneously developing gas-to-power infrastructure for grid stability. Ultimately, the AEB represents a strategic shift toward African-led financial sovereignty, aiming to transform the continent from a raw commodity exporter into an industrialized economy powered by its own managed resources.