To tackle Africa’s heavy dependence on imported refined petroleum, which costs around $30 billion annually due to limited local refining, Afreximbank has launched a $3 billion Revolving Intra-African Oil Trade Financing Programme to support African and Caribbean oil buyers in sourcing refined products.
As a revolving facility, the programme is expected to finance between $10 billion and $14 billion worth of intra-African petroleum imports over time. It aims to tap into the continent’s growing refining capacity—much of which Afreximbank has helped develop—while supporting the African Continental Free Trade Area (AfCFTA) goals of boosting trade, driving industrialization, and creating jobs.
By offering innovative trade finance and supply chain solutions tailored to buyers’ needs, including flexible payment terms, pricing options, and logistics support, Afreximbank is strengthening energy security, building regional value chains, and enhancing economic resilience across Africa and the Caribbean.
Afreximbank, which is the largest financier of the Dangote refinery that started operations in January 2024, is also backing major projects like the 200,000 bpd Lobito Refinery and the 60,000 bpd Cabinda Refinery. The Bank has financed the refurbishment of Nigeria’s 210,000 bpd Port Harcourt Refinery and approved funding for the Bua and Azikel refineries. Additionally, it continues to support Côte d’Ivoire’s Société Ivoirienne de Raffinage (SIR). These investments are expected to boost Africa’s refining capacity by over 1.3 million barrels per day, turning the Gulf of Guinea into a leading refining hub.
Under the new financing program, African refineries will supply products such as Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), Heavy Fuel Oil (HFO), Jet Fuel, and Kerosene.
The $3 billion facility will mainly support African and international oil traders, banks, governments (via Ministries of Finance or petroleum resources/energy), and state-owned enterprises seeking to import refined products from African refineries for domestic use or export. Afreximbank’s trading arm, ATDC Minerals (ATMIN), will also actively participate by working with its trusted African oil trading partners to drive the initiative forward.
Approved applicants will be able to access the facility after passing Know Your Customer (KYC) checks and fulfilling all necessary requirements, including
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Issuing or confirming Letters of Credit or similar trade instruments for African refineries;
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Discounting Letters of Credit or trade instruments in favor of African refineries;
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Making prepayments and direct advances to eligible African refineries.
Professor Benedict Oramah, President and Chairman of the Board of Afreximbank, emphasized that the programme would help establish the Gulf of Guinea as a vital refining hub. He highlighted that this initiative would not only boost refined petroleum production and consumption within Africa but would also stimulate investment in marine logistics, shipping, cargo insurance, and other sectors linked to the oil value chain. He expressed hope that more of the region’s 4 million barrels per day of crude oil would be refined within Africa.
Malawi’s president, Dr. Lazarus Chakwera, praised the initiative, describing it as a bold step toward African energy independence. He said the program would benefit countries like Malawi by reducing reliance on imports, strengthening regional supply chains, and ensuring citizens have more reliable and affordable access to refined petroleum products, thus boosting daily life and economic productivity.
source:www.afreximbank.com
African Energy Council