The proposed Africa Energy Bank will officially commence operations in the first quarter of 2025, despite not having the full $5 billion capital needed for its launch. Omar Farouk, Secretary-General of the African Petroleum Producers’ Organisation (APPO), confirmed this at the Practical Nigerian Content Forum in Yenagoa, Bayelsa State, on Tuesday. He explained that the bank would start with $500 million, with additional funding expected as the bank gains traction.

The bank, headquartered in Abuja, Nigeria, will be the first development bank to be established in record time, with all studies and agreements completed in under two years. Farouk emphasized that the bank will not be funded by Western governments committed to energy transition, instead focusing on African countries and global investors who believe in the continued importance of oil and gas in the global energy mix.

Farouk highlighted that the bank had already raised nearly 50% of the $5 billion target before signing establishment agreements. He reassured that the bank would start operating even without the full funding and expects further investments as the project progresses.

Minister of State for Petroleum Resources, Heineken Lokpobiri, corroborated Farouk’s statement, confirming that the bank would begin operations within the first three months of next year. He also mentioned that the bank’s goal is to grow to $120 billion by 2028, focusing on local content and capacity to fuel Africa’s energy needs.

The bank is structured with three classes of shareholders: APPO member countries, non-APPO African nations, and global investors who share a belief in the long-term role of oil and gas. Farouk made it clear that the bank would not accept investments from those committed to energy transition, to avoid derailing its objectives.

The launch of the Africa Energy Bank marks a significant step in Africa’s pursuit of energy independence and economic growth through local and international collaboration.