The Fund for Export Development in Africa (FEDA), an impact investment subsidiary of Afreximbank, has actively invested in the Cabinda Oil Refinery, an integrated modular oil refining platform in Angola. Gemcorp is developing this project in partnership with Sonangol.
Marlène Ngoyi, CEO of FEDA, said: “Our investment in Cabinda Oil Refinery demonstrates FEDA’s commitment to drive industrialization and import substitution on the continent.”
“The project is central to Angola’s plans to drive further local value addition of its crude resources, allowing the country to meet its refined petroleum needs as well as creating export opportunities. The refinery further contributes to a reduction in greenhouse gases by reducing the need to transport crude and refined products to and from Africa. The investment speaks to FEDA’s mandate of providing capital with a focus on delivering development impact in diverse sectors in Africa that are critical to driving industrialization and value-added export development.”
Cabinda Oil Refinery is a 60,000 barrel per day (bpd) high conversion refinery with a first phase of 30,000 bpd in the Cabinda Province of Angola, one of Africa’s largest crude oil producers.
The refinery is targeted at processing Angola’s crude oil into a variety of petroleum products, including diesel, gasoline, naphtha, and jet fuel, for both local and export consumption.
Upon completion, Cabinda Oil Refinery will double Angola’s refining capacity, enabling the country and the wider region to gradually reduce their reliance on the importation of refined petroleum products.
With this investment, FEDA confirms its commitment to support Africa’s industrialization and economic development while ensuring environmental sustainability.
The transaction will support Angola’s energy transition by enabling the production of cleaner, high-value refined products to cater for up to 20% of the domestic demand, as well as reducing emissions by decreasing the need for transportation for both the exportation of locally produced crude oil and the importation of refined products.
FEDA’s investment comes shortly after Gemcorp, Afreximbank, and Africa Finance Corporation successfully led the debt-raising of a $335 million project financing facility in July 2023.
With this additional investment from FEDA, the Afreximbank Group demonstrates its unique ability to invest across the capital structure and therefore provide unparalleled support to the development of critical infrastructure across the continent.
Atanas Bostandjiev, the CEO of Gemcorp Holdings, expressed his enthusiasm for Gemcorp’s pivotal role in constructing the Cabinda Oil Refinery in collaboration with Sonangol, Afreximbank, Africa Finance Corporation, and FEDA. He highlighted that Angola, as an oil-rich nation, aims to maximise its resources for the betterment of its people. The completion of the refinery will significantly contribute to unlocking the nation’s economic potential and enhancing its energy self-sufficiency. Bostandjiev emphasised that Gemcorp’s investment will be instrumental in realising this vision.
