Africa needs $200bn yearly energy investment — IPPG
Africa Requires $200 Billion Yearly for Energy Investments, IPPG Chair Says
By Udeme Akpan
ACCRA, Ghana — Africa needs to secure more than $200 billion annually in energy investment by 2030 to advance its oil and gas sectors, expand electricity generation and distribution, and promote clean energy initiatives, according to Adegbite Falade, chairman of the Independent Petroleum Producers Group (IPPG).
Speaking at the opening ceremony of Africa Oil Week (AOW) on Wednesday, Falade noted that Africa currently attracts a little over half of the necessary investment to meet its energy needs. He pointed out that, despite accounting for around 20% of the global population, the continent receives only about 3% of worldwide energy investments.
“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,” Falade stressed. He identified the Africa Energy Bank (AEB) as a critical component in bridging the financing shortfall, highlighting its establishment by the African Petroleum Producers Organisation (APPO) and Afreximbank as a significant advancement in funding Africa’s energy sector.
“The AEB is specifically designed to fill the upstream and midstream financing gap left by traditional global financiers,” he explained. “This is Africa’s clear statement that we intend to finance our own hydrocarbon future rather than wait indefinitely for others to do so.”
Falade urged African producers to focus on developing bankable projects, asserting, “It is imperative African producers actively originate high-impact, bankable projects.” He also emphasized the need to enhance investment in gas infrastructure, noting that natural gas currently generates approximately 40% of Africa’s electricity.
However, he pointed out a stark contrast in infrastructure, stating that Africa has less than 50,000 kilometers of oil and gas trunk pipelines compared to over 200,000 kilometers in Europe. “Reserves without pipelines are simply stranded molecules benefiting no one,” he added.
Additionally, Dr. Omar Farouk, former secretary-general of APPO, announced that the AEB is expected to begin operations in October 2026. “All hurdles have been overcome, and I can confidently say that the bank is close to starting operations,” Farouk stated.
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