The African Export-Import Bank (Afreximbank) has unveiled a $3 billion Revolving Intra-African Oil Trade Financing Programme aimed at supporting African and Caribbean buyers in the procurement of refined petroleum products.
The initiative comes in response to Africa’s heavy dependence on imported refined oil, which costs the continent approximately $30 billion annually, largely due to insufficient refining capacity.
Afreximbank estimates the revolving fund will support between $10 billion and $14 billion in intra-African petroleum imports, helping to strengthen regional energy security and trade.
“As well as increasing the volume of refined petroleum products produced and consumed within Africa, the programme will have a multiplier effect across the downstream petroleum sector. It will drive critical investment in shipping and marine logistics for both intra- and extra-African trade in crude oil and refined products,” said Professor Benedict Oramah, President and Chairman of Afreximbank, during the launch event.
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The financing programme is open to a broad range of beneficiaries, including oil traders, commercial banks, governments, and state-owned enterprises. Participating refineries must be based in Africa.
Afreximbank is already a major player in Africa’s oil sector financing. It is the largest financier of the Dangote Refinery and is supporting the construction of the 200,000-barrel-per-day (bpd) Lobito Refinery and the revamp of the 210,000 bpd Port Harcourt Refinery, among other projects in the Gulf of Guinea.
The bank is looking at helping transform the Gulf of Guinea—one of the world’s richest oil-producing regions—from a crude oil exporter into a continental refining hub with over 1.3 million bpd in refining capacity.
To access the trade financing, eligible applicants will be required to issue letters of credit, make prepayments, or receive direct advances to approved African refineries.
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