AEC: It’s Time for the W/Bank to end Upstream financing ban, tackle Africa’s energy poverty crisis

Orisemeke Benjamin

The African Energy Chamber (AEC) is calling on the World Bank to end its ban on financing upstream oil and gas projects, urging the institution to align with Africa’s urgent need to eradicate energy poverty and achieve sustainable development. Lifting this ban is essential to unlocking the continent’s hydrocarbon resources, delivering reliable and affordable electricity to millions, and generating the revenues required to support Africa’s long-term energy transition.

While the AEC welcomes the World Bank’s decision to review its 2017 ban on financing upstream oil and gas development, the time for reassessment is over. Decisive action is needed. Today, around 600 million Africans still lack access to electricity – a number that is not only staggering but growing.

The International Energy Agency notes that gains made in expanding electricity access were reversed during the pandemic, with up to 30 million people who previously had access no longer able to afford it. This deepening energy poverty undermines Africa’s industrialization, economic growth and social development.

The AEC maintains that Africa must be empowered to grow its energy mix pragmatically, using both fossil fuels and renewables – not forced into an “all or nothing” approach that risks leaving hundreds of millions in the dark. Natural gas offers a scalable, affordable and lower-carbon solution that can help meet the continent’s immediate power needs while enabling a just, inclusive energy transition. Yet climate panic and fearmongering – often directed disproportionately at Africa, a continent responsible for just 3% of global CO₂ emissions – threaten to block this path.

“The green agenda and the World Bank’s ban on upstream financing ignore the fact that natural gas can bring life-changing prosperity to Africa through jobs, business growth and monetization,” said NJ Ayuk, Executive Chairman of the AEC. “We are proposing a logical, sustainable path: using our natural gas to meet current needs, generate revenue and fund our transition to renewables. Given that universal access to affordable, reliable electricity is one of the UN’s Sustainable Development Goals, the growing number of Africans without power is morally wrong and must not be ignored.”

Upstream oil and gas development is already demonstrating its capacity to advance energy access. In Mozambique, domestic gas fuels the 450 MW Temane gas-to-power project, delivering electricity to communities and industries. Senegal’s gas-to-power efforts, Nigeria’s Gas Master Plan and Egypt’s expanded gas-fired generation highlight how these resources are driving regional electrification and economic growth. Future upstream projects hold transformative potential: Mozambique’s gas reserves could generate over $100 billion in revenue; Namibia’s oil discoveries could deliver $3.5 billion annually at peak production, which can fund infrastructure, education, healthcare and clean energy investments.

Meanwhile, global financial trends are shifting. Major banks, particularly in the U.S., are easing ESG-related restrictions and resuming oil and gas financing, recognizing that natural gas remains a vital bridge fuel. The World Bank must do the same – not as a concession, but as a commitment to its mandate to promote shared prosperity and reduce poverty.

The AEC urges the World Bank to turn its policy review into meaningful action. Supporting upstream oil and gas development is not only an economic necessity – it is a moral imperative if we are serious about ending energy poverty and enabling a sustainable, equitable future for Africa.