The African Export-Import {Bank} (Afreximbank) has launched a $3 billion Revolving Intra-African Oil Commerce Financing Programme.
In response to a press launch on the {bank}’s web site on Monday, the power goals to finance the acquisition of refined petroleum merchandise by African and Caribbean oil patrons.
The assertion learn, partially, “African Export-Import {Bank} (Afreximbank) has launched a US$3 Billion Revolving Intra-African Oil Commerce Financing Programme to finance the acquisition of refined petroleum merchandise by African and Caribbean oil patrons.”
In response to the {Bank}, the programme will assist the continent’s increasing refining capability, a lot of which has been developed with Afreximbank’s financing. It aligns with the aims of the African Continental Free Commerce Space (AfCFTA), selling intra-African commerce, advancing industrialisation, and creating jobs.
Afreximbank emphasised that by deploying progressive commerce finance and provide chain options tailor-made to key stakeholders’ wants, together with versatile tenure, aggressive pricing buildings, and logistics assist, the initiative will improve vitality safety, strengthen regional worth chains, and construct {economic} resilience throughout Africa and the Caribbean.
In response to the {bank}, by way of its a number of investments, Afreximbank helps to create over 1.3 million barrels per day (bpd) of refining capability, positioning the Gulf of Guinea as a future refining hub, lowering Africa’s reliance on overseas refined petroleum imports, and selling intra-continental commerce.
Professor Benedict Oramah, President and Chairman of the Board of Administrators, Afreximbank, stated that the programme “would galvanise efforts in the direction of making the Gulf of Guinea a key refining hub. While the programme may have a direct impression on the quantity of the refined petroleum merchandise produced and consumed in Africa, it can even have a multiplier impact on the downstream petroleum worth chain as it can catalyse crucial investments in transport and marine logistics for intra and additional African commerce of crude oil and refined merchandise. The multiplier impact can even be seen in marine cargo insurance coverage and different ancillary companies inside the sector. We wish to see an elevated proportion of the about 4 mbpd of crude oil produced within the Gulf of Guinea refined in Africa.”
Additionally commenting on the initiative, His Excellency Dr. Lazarus Chakwera, President of the Republic of Malawi, stated: “This programme is a transparent demonstration of Africa’s resolve to take cost of its personal vitality future. We commend Afreximbank for this well timed intervention, which stands to learn African nations like Malawi by lowering import dependency, strengthening regional provide chains, and maintaining extra worth inside the continent. Most significantly, it can ship actual impression to our residents by making certain extra secure and inexpensive entry to subtle petroleum merchandise, that are important to Malawians’ each day life and {economic} productiveness.”
Afreximbank has performed a pivotal function in strengthening Africa’s refining sector.
It’s the largest financier of the Dangote Refinery, which started operations in January 2024, and can also be supporting the event of the 200,000 bpd Lobito Refinery, constructing on progress made with the 60,000 bpd Cabinda Refinery in Angola.
In Nigeria, Afreximbank has supplied financing for the refurbishment of the 210,000 bpd Port Harcourt Refinery, and has just lately permitted financing for the event of the BUA Refinery and Azikel Refinery. Moreover, the {Bank} continues to finance Société Ivoirienne de Raffinage (SIR) in Côte d’Ivoire.
