The Independent Petroleum Producers Group (IPPG) says Africa needs more than $200 billion in annual energy investment by 2030 to develop its oil and gas resources, expand electricity generation and distribution, and grow clean energy.
The Chairman of the IPPG, Adegbite Falade, made the call on Tuesday at the opening of the Africa Oil Week in Accra, Ghana.
Mr Falade said Africa currently attracts only about half of the investment it requires, despite accounting for about one-fifth of the world’s population.
He noted that the continent attracts only about three per cent of global energy investment, creating a major financing gap for its energy development.
Africa must finance its Energy future
Mr Falade said African countries must reduce their dependence on external capital and strengthen their own financial institutions if the continent is to secure its energy future.
“If Africa is to secure its energy future in an era of international capital retreat, we must look inward and build our own institutional and financial resilience,” he said.
He identified the Africa Energy Bank (AEB) as a critical instrument for closing the financing gap.
The bank, established by the African Petroleum Producers Organisation and Afreximbank, is headquartered in Abuja and has an initial capital base of $5 billion, with plans to mobilise $10 billion in its first phase and grow towards $15 billion by 2030.
“The AEB is purpose-built to bridge the upstream and midstream financing gap left by traditional global financiers,” Mr Falade said.
He added, “This is Africa’s clearest statement yet that we intend to finance our own hydrocarbon future, rather than wait indefinitely for others to do so.”
Bankable projects needed
Mr Falade, however, stressed that establishing a financing institution would not be enough without viable projects capable of attracting investment.
“It is imperative African producers actively originate high-impact, bankable projects,” he said.
He warned that the effectiveness of the Africa Energy Bank would depend on the availability of projects that investors could confidently finance.
“An institution built to finance Africa’s energy future is only as useful as the pipeline of investable projects our industry puts in front of it,” he added.
Gas infrastructure deficit
The IPPG chairman also called for greater investment in gas infrastructure, warning that Africa’s large gas reserves could remain underutilised without adequate pipelines and processing facilities.
Mr Falade said natural gas already generates about 40 per cent of Africa’s electricity, but the continent has less than 50,000 kilometres of oil and gas trunk pipelines, compared with more than 200,000 kilometres in Europe.
“This scale of infrastructure cannot sustainably or impactfully monetise our 620 trillion cubic feet of proven gas reserves,” he said.
“Reserves without pipelines are simply stranded molecules benefiting no one.”
He urged governments and investors to treat pipelines, power grids and export facilities as strategic continental infrastructure.
“Every conversation in this hall about upstream investment must therefore be paired with an equally serious commitment to midstream infrastructure,” he said.
Africa Energy Bank set for October
Meanwhile, the former Secretary-General of the African Petroleum Producers Organisation, Dr Omar Farouk, said the Africa Energy Bank is expected to commence operations in October 2026.
Dr Farouk said the bank had overcome major hurdles, including shareholder agreements, the establishment of its headquarters and financial commitments.
“The financial institution has passed through a lot of hurdles. Everything is looking up now. Consultations are currently ongoing to recruit key personnel and board members,” he said.
He added, “All hurdles have been overcome and I can confidently say that the bank has come close to starting operations.”
The proposed investment push is aimed at addressing one of Africa’s biggest development challenges: inadequate and unreliable energy infrastructure.
For Nigerians and other Africans, greater investment in oil and gas infrastructure, electricity generation, pipelines and clean energy could improve energy access, support industries, create jobs and strengthen economic growth.
However, the scale of the funding gap means governments, local investors and international partners will need to work together to turn Africa’s energy resources into reliable and affordable power for its growing population.
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