Though large multinational banks tend to dominate the oil and gas sector, small- to mid-sized banks, often regional or local, are playing a growing role in financing fossil fuel projects in Africa through direct loans, specializing lending, participation in syndicated loans, or local infrastructure financing. As international financial institutions face heightened scrutiny in the sector, opportunities for smaller and indigenous banks will be on display at the Invest in African Energy 2025 Forum in Paris next May, which aims to connect African energy and infrastructure projects with diverse pools of capital.

Africa Energy Bank

Signed into implementation in June by the African Export-Import Bank and African Petroleum Producers Organization, the Africa Energy Bank (AEB) serves to catalyze funding for Africa’s oil and gas and energy industries, responding to the withdrawal of international trade and project financing by global lending institutions. The first-of-its-kind bank recognizes Africa’s reliance on its natural resources for future economic and industrial development. With an initial capitalization of $5 billion and set to be headquartered in Abuja, the AEB is open for signature by prospective member states and is set to make a sizable impact on project funding access across the continent in the coming years.

First Bank of Nigeria 

First Bank of Nigeria (FBN) has supported projects with the state-owned Nigerian National Petroleum Corporation, particularly for domestic oil exploration, with oil and gas exposure accounting for over 30% of the bank’s net loans. In June this year, FBN signed a $200-million loan facility agreement with the African Export-Import Bank to support the needs of its clients across various industries, including oil and gas, mining and energy. As Nigeria aims to unlock up to $2.5 billion in fresh oil and gas investments on the back of sector reforms, indigenous banks like FBN could provide critical financial support for hydrocarbon projects that contribute to local industry.

Kenya’s Equity Bank

Nairobi-headquartered Equity Bank has participated in regional petroleum logistics and transport infrastructure, investing $70 million in the Lake Victoria Logistics Project, which aims to reduce costs of transporting fuel in neighboring Uganda. The Bank’s Ugandan subsidiary also signed an agreement with the Uganda National Oil Company to support the region’s growing oil and gas sector through enhanced support for SME development and financial inclusion. With Kenya and Uganda targeting first oil production from their respective Lake Turkana and Lake Albert field developments by the end of the decade, Equity Bank is well-positioned to support East Africa’s transformation into a regional petroleum hub. 

Lomé-Headquartered Ecobank

Though pan-African in focus, EcoBank has targeted oil and gas activities in West and Central Africa, providing financial backing for several smaller-scale infrastructure projects. This includes the upgrade of the Société ivoirienne de raffinage refinery in Ivory Coast – which is now undergoing an additional phase of capacity expansion – for which the bank issued a $240-million syndicated loan facility back in 2020. Ecobank’s local branches are key to developing and sustaining smaller projects that multinational banks might overlook, and could play a major role in infrastructure development as emerging producers like Senegal and Mauritania step into the picture.

Morocco’s Attijariwafa Bank

Attijariwafa Bank, one of the largest banks in North Africa, finances oil and gas exploration and infrastructure projects across North and West Africa. This includes offering $223 million to partially finance the second phase of gas production under Sound Eenrgy’s Tendrara license in North East Morocco. In January this year, Attijariwafa signed a €100-million risk-sharing agreement with the African Development Bank to unlock private sector potential, with a view to mobilizing €500 million worth of trade for companies operating in more than 20 African countries and scaling up financing to firms in the energy sector.

Egypt’s Banque Misr

Though relatively small compared to global giants, Banque Misr plays a significant role in financing local oil and gas projects in Egypt. The bank is a shareholder in the Alexandria Minerals Oils Company refinery, which is undergoing upgrade works, as well as in the Alexandria National Refining & Petrochemical Company, which is planning to invest $380 million in a sustainable aviation fuel plant, as well as the development of Egypt’s first green methanol production project. As Egypt doubles down on investment in hydrocarbon exploration and field development – as well as downstream and petrochemical sector growth – local banks like Misr have a key part to play in fueling regional energy exports. 

IAE 2025 is an exclusive forum designed to facilitate investment between African energy markets and global investors. Taking place May 13-14, 2025 in Paris, the event offers delegates two days of intensive engagement with industry experts, project developers, investors and policymakers. For more information, please visit www.invest-africa-energy.com. To sponsor or participate as a delegate, please contact [email protected].