Pan African lender, African Export Import Bank (Afreximbank), has introduced a $3 billion for oil trade financing programme aimed at reducing Africa’s $30 billion annual spend on imported refined petroleum.
The fund, which targets African and Caribbean oil buyers, is designed to facilitate between $10 billion and $14 billion worth of intra African petroleum imports over time, Afreximbank said in a statement.
This initiative is part of the bank’s broader efforts to enhance energy security across Africa and support the African Continental Free Trade Area (AfCFTA) goals of boosting industrialisation, regional trade, and economic growth.
“We are creating a framework to support Africa’s energy independence and push for greater investment in oil related infrastructure across the continent,” said Professor Benedict Oramah, president and chairman of the board of Afreximbank.
The loan facility, officially named the Revolving Intra African Oil Trade Financing Programme, offers tailored trade finance and supply chain solutions, including flexible payment terms, pricing structures, and logistics support.
These solutions aim to improve access to refined products while promoting the growth of regional value chains across the continent.
The programme will allow approved applicants to import refined petroleum products.
These applicants include oil traders, banks, governments, and state-owned enterprises.
Afreximbank’s trading arm, ATDC Minerals (ATMIN), will also play a key role.
It will collaborate with trusted African oil trading partners to drive the initiative forward.
Growing Africa’s refining capacity
Moreover, Afreximbank is already a key player in Africa’s oil infrastructure, being the largest financier of Nigeria’s Dangote Refinery, which began operations in January 2024.
The bank is also supporting major refining projects across the continent, including Angola’s 200,000 barrels per day Lobito Refinery and the 60,000 bpd Cabinda Refinery.
In addition, Afreximbank has helped finance the refurbishment of Nigeria’s Port Harcourt Refinery (210,000 bpd), and it has approved funding for the Bua and Azikel refineries.
These investments are expected to contribute over 1.3 million bpd to Africa’s refining capacity, transforming the Gulf of Guinea into a leading refining hub.
On his part, Oramah noted that the programme could encourage more of Africa’s crude oil estimated at 4 million bpd to be refined locally rather than exported, which would reduce dependency on imported refined products and strengthen regional economies.
