African oil-producing nations are making strides toward the establishment of a $5 billion energy bank, having raised 45% of the startup capital needed for the lender, which is set to launch next year. The initiative aims to bridge the growing funding gap in oil and gas projects, as traditional investors increasingly shift their focus from crude oil to low-carbon energy alternatives.

Speaking on the sidelines of the Angola Oil & Gas conference in Luanda, Omar Farouk Ibrahim, Secretary General of the African Petroleum Producers Organization (APPO), revealed that the funds had been secured “even before” the legal framework for the bank’s establishment had been finalized. Angola, Nigeria, and Ghana are among the key initial financial backers of the venture, which is expected to play a pivotal role in sustaining energy investments across the continent.

The energy bank will provide critical funding to oil and gas projects in African nations, many of which face dwindling support from international investors amid the global transition to cleaner energy sources. The initiative seeks to ensure that Africa’s oil-producing countries can continue to develop their energy sectors, while also exploring ways to transition to sustainable energy in the long term.

With the bank scheduled to be operational in 2025, African oil producers are focused on raising the remaining capital and finalizing the necessary legal and regulatory frameworks. The move underscores the continent’s commitment to maintaining energy security and economic development amid evolving global energy trends.