Senegal approves payment into African Energy Bank as APPO targets $120bn capital build-out

Senegal has approved its contribution to the African Energy Bank (AEB) and expects to complete the payment before the end of the year, African Petroleum Producers’ Organization (APPO) secretary-general Omar Farouk Ibrahim said on December 9.

The AEB, headquartered in Abuja, has an initial capital base of $5bn that APPO and Afreximbank plan to scale to $120bn within three to five years. The bank’s mandate includes long-term financing for oil, gas, midstream and downstream infrastructure, as well as renewable energy and electrification projects.

Senegal joins a growing list of member states advancing their commitments as the bank moves toward full operationalisation.

“With this payment, we are getting closer to the development of the African Energy Bank,” Ibrahim said at the MSGBC Oil, Gas & Power 2025 conference in Dakar. APPO has argued that the bank will help address financing gaps created by declining international appetite for hydrocarbons and shifting ESG constraints on traditional lenders.

The decision coincides with Senegal’s efforts to advance its hydrocarbons sector, with first oil from the Sangomar field and initial gas output from the Greater Tortue Ahmeyim (GTA) project expected to reshape the country’s energy mix. Officials have said access to new funding platforms is critical as Dakar prepares for the next phases of development.

Sector officials say African producers see the AEB as a mechanism to secure funding for strategic energy assets amid global capital tightening. Countries such as Nigeria, Angola and the Republic of Congo have previously indicated support for the institution, while APPO continues negotiations with additional states and private-sector partners.

For Senegal, participation signals intent to leverage regional financial instruments as it prepares integrated gas-to-power expansion and evaluates new licensing rounds. Improved access to credit could support local-content targets, domestic service providers and grid-investment programmes.

For the AEB, next steps include completing member-state subscriptions, finalising governance structures and determining the bank’s first pipeline of eligible projects. APPO has said priority will be given to projects with clear economic returns and regional energy security benefits.

Africa’s current estimates of 120 million barrels of oil and 632 trillion cubic feet (17.89 trillion cubic metres) of gas reserves are “grossly conservative”, according to Ibrahim, who said in April that advancements in exploration technology could lead to these figures doubling or even more.

Speaking at the African Refiners and Distributors Association (ARDA) conference in Cape Town, Ibrahim also highlighted the stark contradiction in energy access, observing that while Africa exports 75% of its oil and 45% of its gas, the majority of its population still lacks access to modern energy. He described the continent’s energy infrastructure as limited, only connecting oil and gas fields to ports for export rather than serving domestic users.