Afreximbank, Africa’s premier export-import financial institution, is stepping up efforts to cement its legacy through the launch of the Africa Energy Bank (AEB), a new supranational energy lender aimed at powering the continent’s energy future.
At his final annual general meeting as President of Afreximbank in Abuja (June 2025), Nigeria’s Benedict Oramah emphasized the urgency of establishing the AEB. This bold move reflects Afreximbank’s ambition to tackle the continent’s energy financing challenges while reinforcing its transformative work across trade, energy, and infrastructure financing.
1. The Legacy of Prof. Benedict Oramah
Prof. Oramah, who led Afreximbank from 2015 to June 2025, reshaped the institution into a systemic stabilizer of African economies. Over the decade, the bank’s assets grew from approximately $5 billion to over $40 billion, net income reached near $1 billion in 2024, and equity rose to $7.2 billion :contentReference[oaicite:1]{index=1}.
Under his tenure, Afreximbank mobilized an impressive $70+ billion during crises—commodity slumps, the Ebola outbreak, COVID-19, and geopolitical disruptions—showcasing its crucial role as both financier and economic anchor :contentReference[oaicite:2]{index=2}.
His accolades include the prestigious 2024 Mohammed S. Barkindo Lifetime Achievement Award and being named Forbes Africa’s Person of the Year 2023 :contentReference[oaicite:3]{index=3}.
2. Institutional Highlights & Innovations
2.1 Pan-African Payment and Settlement System (PAPSS)
Launched in 2022, PAPSS revolutionized intra-African trade by enabling instant cross-border payments in local currencies—saving an estimated $5 billion annually :contentReference[oaicite:4]{index=4}.
2.2 Strategic Infrastructure Financing
Afreximbank financed key mega-projects including the Dangote Refinery and special economic zones, driving industrialization :contentReference[oaicite:5]{index=5}.
2.3 Crisis Response & Health Investment
The bank supported vaccine distribution, medical aid, and launched a $600 million research-backed African Medical Centre of Excellence in Abuja :contentReference[oaicite:6]{index=6}.
3. Africa Energy Bank: Vision & Launch
3.1 What is the Africa Energy Bank?
AEB is a pan-African, supranational energy bank capitalized initially at $5 billion, born from a partnership between Afreximbank and the Africa Petroleum Producers’ Organisation (APPO) :contentReference[oaicite:7]{index=7}.
3.2 The Launch and the Charter Signing
The formal agreement and charter were signed on 4 June 2024 in Cairo, Egypt, witnessed by Egypt’s Petroleum Minister Tarek El Molla :contentReference[oaicite:8]{index=8}. The Charter must now be ratified by member states to initiate operations.
3.3 Objectives & Scope
- Address Africa’s energy investment gaps—especially in oil, gas, power and infrastructure projects.
- Support energy poverty reduction and drive industrial growth.
- Financing not limited to hydrocarbons; renewable energy is also a priority :contentReference[oaicite:9]{index=9}.
- Plans include eventual growth to a $120 billion asset portfolio within five years :contentReference[oaicite:10]{index=10}.
4. Strategic Partnerships & Support
4.1 Endorsements from the African Energy Chamber
The African Energy Chamber officially endorsed the AEB during African Energy Week 2024, underlining its role in bridging Africa’s energy financing gap :contentReference[oaicite:11]{index=11}.
4.2 National Support from Nigeria
Nigeria pledged strong backing. Hosting Abuja as AEB’s headquarters, the government, led by Minister Lokpobiri, highlighted its potential to transform Africa’s energy landscape while catalyzing national benefits :contentReference[oaicite:12]{index=12}.
4.3 APPO Collaboration
APPO and Afreximbank formalized their alliance through the MoU that led to the AEB’s establishment :contentReference[oaicite:13]{index=13}.
5. Financial & Institutional Context
Afreximbank has a diversified, robust balance sheet ($40 billion+ in assets with Fitch/Baa1 & BBB ratings). Its stake in the AEB (initial $1.25 billion equity) reflects its commitment to energy infrastructure :contentReference[oaicite:14]{index=14}.
6. Challenges & Outlook
Key challenges ahead:
- Charting member support: At least two states must ratify the Charter for AEB to commence.
- Geopolitical and climate pressure: Balancing fossil fuel financing with renewable energy ambitions.
- Market positioning: Carving a role among multilateral banks, blending commercial returns and developmental mandates.
- Transition leadership: Incoming president must maintain momentum post-Oramah.
7. The Legacy and the Road Ahead
Prof. Oramah leaves a legacy of transformation—8× asset growth, institutional innovation, and continental scale impact. Now, the AEB stands as his capstone vision: a self-funded, African-controlled energy bank unlocking long-term sustainable growth.
Further reading:
- About Afreximbank – Overview of mission and structure
- Green Energy Initiatives
- Afreximbank (Wikipedia) – Institutional background :contentReference[oaicite:15]{index=15}
- Benedict Okey Oramah (Wikipedia) – Leadership profile :contentReference[oaicite:16]{index=16}
- Africa Petroleum Producers Organisation (APPO)
Conclusion
With the Africa Energy Bank’s launch, Afreximbank channels its decade-long legacy into a bold institutional purpose: enabling Africa’s energy autonomy. Through strategic partnerships, robust financing, and visionary leadership, the AEB represents a decisive step toward a self-reliant and industrialized Africa.
📌 Table of Contents
- 1. The Legacy of Prof. Benedict Oramah
- 2. Institutional Highlights & Innovations
- 2.1 PAPSS
- 2.2 Infrastructure Financing
- 2.3 Crisis Response & Health
- 3. Africa Energy Bank: Vision & Launch
- 3.1 What is the AEB?
- 3.2 Launch & Charter Signing
- 3.3 Objectives & Scope
- 4. Strategic Partnerships & Support
- 4.1 African Energy Chamber
- 4.2 Nigeria
- 4.3 APPO
- 5. Financial & Institutional Context
- 6. Challenges & Outlook
- 7. Legacy & Road Ahead
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