The African Energy Chamber (AEC) has issued a strong appeal to the World Bank to immediately lift its ban on financing upstream oil and gas projects, warning that the policy is deepening Africa’s energy poverty crisis and stifling opportunities for sustainable development in the region.
The World Bank’s 2017 ban on funding upstream hydrocarbon activities was part of a broader climate-driven agenda to reduce fossil fuel reliance globally.
However, the AEC argues that such restrictions are not only impractical in Africa’s context but also morally indefensible, given the scale of energy poverty on the continent. An estimated 600 million people in Africa lack access to electricity, a problem that has worsened in recent years.
According to the AEC, many of the gains made in electricity access prior to the COVID-19 pandemic have been reversed, with up to 30 million Africans who previously had access to power now unable to afford it.
The AEC maintains that the continued denial of financing for oil and gas exploration and development is blocking progress toward energy security, industrialization and poverty alleviation.
Executive Chairman of the African Energy Chamber, NJ Ayuk, says Africa must be allowed to use its natural resources pragmatically to build a balanced energy mix.
He emphasised that natural gas remains a critical bridge fuel capable of delivering affordable, scalable and relatively cleaner energy while supporting long-term investments in renewable technologies.
“A one-size-fits-all energy transition model cannot work for Africa. The green agenda and the World Bank’s ban ignore the fact that natural gas has the potential to transform lives, create jobs, drive industrial growth, and generate the revenue needed to support renewables. To keep hundreds of millions in the dark in the name of climate policy is not only unjust, it is morally wrong,” he states.
The Chamber points to several national examples where upstream development has already delivered tangible benefits. In Mozambique, domestic gas is powering the 450 MW Temane gas-to-power project, bringing electricity to homes and industries. In Senegal, gas infrastructure is underpinning electrification efforts.
Egypt has expanded its gas-fired generation to boost power supply, while Nigeria’s Gas Master Plan continues to channel domestic gas into industrial and power projects.
The AEC says the economic and social benefits of further upstream development are substantial, stressing that Mozambique’s reserves alone could generate over $100 billion US in revenue, while Namibia’s recent offshore oil discoveries could yield $3.5 billion yearly at peak output.
According to the Chamber, such revenues are vital for funding public services, infrastructure, education, healthcare and, crucially, clean energy investments. Ayuk also notes that the World Bank risks being left behind as global financial trends shift.
In the United States and other markets, major lenders are now reassessing restrictive ESG-related policies and resuming financing for oil and gas, recognising natural gas as a key component of a realistic energy transition. The World Bank, he says, must follow suit.
“The World Bank’s mission is to reduce poverty and promote shared prosperity. Yet it continues to uphold a policy that denies Africa the very tools it needs to achieve those goals. That contradiction must end,” Ayuk points out.
While the World Bank has signalled a willingness to review its position, the AEC says the time for review has passed and what is now required is immediate and meaningful policy reversal.
The Chamber insists that continued inaction would amount to neglecting the developmental needs of an entire continent. It also rejects what it sees as a double standard in global climate policy, arguing that Africa, which contributes only around three per cent of global carbon emissions, is unfairly pressured to abandon fossil fuels while wealthier nations continue to benefit from their hydrocarbon industries.
