Written By: Faith Jemosop
The government of Côte d’Ivoire has officially backed a draft law to ratify the creation of the African Energy Bank (BAE), a key continental initiative designed to accelerate energy infrastructure and transition projects across Africa . This move marks a major milestone in fostering sustainable energy financing and strengthening Africa’s energy independence.
The Africa Energy Bank, formalized through an agreement signed in 2024, is endowed with an initial capital of US $5 billion, earmarked specifically for energy projects and infrastructure across the continent . With Côte d’Ivoire’s ratification, the BAE inches closer to formal operations and deployment of its development mandate.
The Power of the BAE
- Catapulting renewable energy efforts: Côte d’Ivoire has ambitiously targeted 45% renewable energy by 2030, aiming to expand its power capacity by 1.7 times . Ratification unlocks BAE funding to help meet this goal, across wind, solar, hydro, and other sustainable sources.
- Financing pan-African projects: The BAE will fund infrastructure like new power plants, grid upgrades, cross-border interconnectors, and off-grid systems, thereby reducing reliance on fossil fuels and enhancing energy access.
- Driving energy sovereignty: Continental cooperation through the BAE promises reduced dependence on external financiers and allows countries greater agenda‑setting power for local sustainable energy projects.
The BAE was first proposed in 2022 by the African Petroleum Producers’ Organization (APPO), in collaboration with Afreximbank, Africa’s central trade financer . The creation process has since progressed via diplomatic channels, formal negotiation, and consensus-building among African governments.
Côte d’Ivoire’s government spokesperson, Amadou Coulibaly, confirmed that the Cabinet approved the draft law on July 5. He emphasized that ratification signals a “decisive step” toward both sustainable energy goals and the continent’s energy independence. If passed by parliament, Côte d’Ivoire will formally become a signatory member, eligible to draw from and shape BAE-funded investments.
Côte d’Ivoire’s Energy Transition Ambitions
Côte d’Ivoire has swiftly advanced its energy sector, combining new hydropower, gas, and renewables:
- Singrobo Hydroelectric Station: Built in 2023 across the Bandama River, this plant adds 44 MW of clean energy, approximately 217 GWh annually, to the grid.
- Solar & gas projects: The country continues expanding its solar and gas-fired infrastructure, reflecting its diversified energy strategy integrated into national policy goals.
The BAE’s targeted capital injection could dramatically accelerate deployment of essential renewable projects, especially in rural electrification and green energy zones.
Côte d’Ivoire’s next steps are clear:
- Parliamentary approval – the draft law now moves to Côte d’Ivoire’s legislature for deliberation and ratification.
- FAREA inclusion – once enacted, the country will join the BAE’s founding signatory states, helping finalize its governance and operational protocols.
- Project rollout – Côte d’Ivoire can propose and access BAE-backed energy initiatives as soon as the bank establishes its project pipelines.
- Continental influence – as an early adopter, the country is well-placed to shape the BAE’s funding priorities, including technology, pricing models, and regional integration.
Broader Implications for Africa
- A paradigm shift in energy funding: Much like the African Development Bank or Afreximbank before it, the BAE will act as a dedicated financier for continent-wide energy sustainability.
- Greater investment certainty: A $5 billion capital base allows the BAE to leverage additional private or development funding, reducing risk and boosting investor confidence in African energy assets.
- Regional energy integration: With a broader mandate, the BAE can support cross-border energy projects, helping to stabilize grids, reduce costs and support inter-country trade.
Also read: Collaboration Supercharges Kenya’s EV Adoption Drive
What Could Stall Progress?
- Signatory thresholds: The BAE requires a quorum of member states to ratify; until enough African countries follow Côte d’Ivoire’s lead, operations may be delayed.
- Governance frameworks: Establishing fair, transparent management and avoiding bureaucratic bottlenecks are essential to avoid stalling.
- Competition for funds: While the $5 billion is substantial, it first must be allocated effectively across high-impact projects, not just in Côte d’Ivoire, but continent-wide.
Global energy pressures: Rising global interest rates or geopolitical strains could constrain international donors and limit co-financing capacity.
