• Senegal approves payment for its capital subscription to the African Energy Bank (AEB)
• APPO says the contribution brings the bank “closer to development”
• AEB capitalization targets USD 5 billion to finance oil, gas, and power projects in Africa

Senegal has approved payment for its contribution to the capital of the proposed African Energy Bank (AEB), a key step toward the bank’s operationalization. Senegal has made this decision to honor its financial obligations under the new continental energy financing institution.

According to the Africa Energy Chamber and reporting from the MSGBC Oil, Gas & Power 2025 Conference, the payment forms part of the AEB’s first round of capital mobilization aimed at establishing a USD 5 billion fund to finance oil, gas, and energy infrastructure across the continent.

The African Petroleum Producers’ Organization (APPO), one of the founding institutions behind the bank, welcomed the development. APPO Secretary-General Dr. Omar Farouk Ibrahim stated that, “with this payment, we are getting closer to the development of the African Energy Bank,” during the MSGBC conference where progress on the bank was discussed.

The AEB, expected to be headquartered in an African oil-producing country yet to be officially announced, is being established jointly by APPO and Afreximbank. It aims to provide African governments and national oil companies access to long-term financing at a time when several global lenders are scaling back exposure to hydrocarbons.

According to Africa Sustainability Matters, the AEB is designed to support upstream oil and gas development, gas-to-power programmes, refinery projects, and energy-transition-aligned infrastructure. The institution is also expected to help African countries reduce capital dependence on external markets and keep value creation within the continent.

Senegal’s approval aligns with broader national ambitions in the MSGBC basin, where the country has recently begun producing oil and gas from projects such as Sangomar and GTA. APPO says the next phase of the bank’s establishment will involve the consolidation of shareholder payments and finalisation of governance structures ahead of a formal launch.

By Cynthia Ebot Takang