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The lender hopes that by processing more of Africa’s crude oil locally, it can help retain value on the continent and reduce exposure to global supply chain disruptions
ANALYSIS | ISAAC KHISA | Africa’s multi-lateral lender, the African Export-Import Bank (Afreximbank) has launched a US$3 billion revolving trade finance programme aimed at reducing Africa’s heavy reliance on imported refined petroleum products, which costs the continent an estimated $30 billion per annum.
The new Intra-African Oil Trade Financing Programme will provide funding for the purchase of refined petroleum products by African and Caribbean buyers from refineries located within the continent. It is expected to support between US$10 billion and US$14 billion worth of intra-African petroleum imports over multiple financing cycles.
The programme is part of a broader push by Afreximbank to leverage emerging refining capacity in Africa and align with the objectives of the African Continental Free Trade Area (AfCFTA), including promoting intra-African trade, accelerating industrialisation, and creating employment.
“This programme will galvanise efforts towards making the Gulf of Guinea a key refining hub,” said Afreximbank President and Chairman of the Board, Professor Benedict Oramah, in a statement on April.28.
“It will not only boost the volume of refined petroleum products consumed and produced in Africa but also generate a multiplier effect across the petroleum value chain, from marine logistics to insurance.”
Eligible oil traders
According to the bank, the financing will be made available to eligible oil traders, both African and international, as well as banks, government ministries, and state-owned enterprises engaged in the importation of refined petroleum products for domestic use or export. Products covered under the programme include gasoline (PMS), diesel (AGO), jet fuel, heavy fuel oil (HFO), and kerosene.
The facility will allow approved applicants to draw on sub-limits of the global envelope, subject to standard know-your-customer (KYC) requirements and trade documentation. Financing instruments will include letters of credit, trade guarantees, prepayments, and direct advances to eligible African refineries.
Afreximbank’s affiliated entity, ATDC Minerals (ATMIN), will also play a role in supporting trading and financing activities, particularly in collaboration with long-term African oil trading partners.
Powering Africa’s refineries
The bank has positioned itself as a major financier of refining capacity across the continent. It is the largest lender to the 650,000 barrels-per-day Dangote refinery in Nigeria, which commenced operations in January 2024. It has also financed the development of Angola’s 200,000 bpd Lobito Refinery and previously supported the 60,000 bpd Cabinda Refinery.
Additionally, Afreximbank has funded the rehabilitation of Nigeria’s 210,000 bpd Port Harcourt Refinery and recently approved financing for the Bua and Azikel refinery projects, also in Nigeria. In Côte d’Ivoire, the bank continues to support Société Ivoirienne de Raffinage (SIR), one of the region’s key refining players.
“These investments represent over 1.3 million barrels per day of refining capacity,” the bank said, “and are part of an effort to reposition the Gulf of Guinea from a crude oil exporting zone into a global refining centre.”
Malawi’s President Dr. Lazarus Chakwera has praised the initiative, calling it a turning point for energy independence in Africa.
“This programme is a clear demonstration of Africa’s resolve to take charge of its own energy future,” Chakwera said.
“We commend Afreximbank for this timely intervention, which stands to benefit countries like Malawi by reducing import dependency, strengthening regional supply chains, and ensuring more affordable fuel access for our citizens.”
Chakwera added that more stable fuel availability would boost productivity and improve the quality of life for millions of Africans.
The bank said the programme will also unlock new investment opportunities in the oil logistics and insurance sectors, creating ripple effects throughout the broader economy.
Afreximbank hopes that by processing more of Africa’s crude oil locally, it can help retain value on the continent and reduce exposure to global supply chain disruptions.
