Afreximbank Unveils $3 Billion Oil Financing Programme to Boost Africa’s Oil Refineries

In a bold step towards reducing Africa’s dependence on imported refined petroleum products, the African Export-Import Bank (Afreximbank) has unveiled a $3 billion Revolving Intra-African Oil Import Financing Programme aimed at supporting African and Caribbean oil buyers in sourcing refined petroleum directly from African refineries.

The initiative is designed to address the continent’s long-standing reliance on external supplies, which costs Africa an estimated $30 billion annually in petroleum import expenses, largely due to inadequate domestic refining capacity.

As a revolving credit facility, the programme is expected to facilitate between $10 billion and $14 billion in intra-African petroleum trade over its first three years, leveraging the growing refining capacity Afreximbank has helped build across the continent. The programme aligns closely with the objectives of the African Continental Free Trade Area (AfCFTA), promoting intra-African trade, fostering industrialisation, creating jobs, and strengthening regional value chains.

Financing Africa’s Energy Transition

Key products eligible under the programme include Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), Heavy Fuel Oil (HFO), Jet Fuel, and Kerosene, with African refineries as the designated suppliers. The facility will provide critical trade finance to a range of stakeholders, including oil traders (both African and international), governments, state-owned enterprises, and banks seeking to source refined products from within Africa.

Eligible entities can access financing through letters of credit, discounting of trade instruments, and direct advances to refineries, subject to Know Your Customer (KYC) clearance and compliance with stipulated conditions.

“The programme will galvanise efforts towards making the Gulf of Guinea a key refining hub,” said Professor Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank. “Beyond increasing the volume of refined petroleum produced and consumed within Africa, this initiative will catalyse investments in shipping, marine logistics, marine cargo insurance, and other ancillary sectors, fostering a robust downstream petroleum value chain.”

Backing Africa’s Refining Revolution

Afreximbank is the largest financier of Nigeria’s 650,000-barrel-per-day Dangote Refinery, which commenced operations in January 2024. The Bank has also supported the 200,000 bpd Lobito Refinery and the 60,000 bpd Cabinda Refinery in Angola, alongside the refurbishment of Nigeria’s 210,000 bpd Port Harcourt Refinery and the development of the Bua and Azikel refineries in Nigeria.

Through these investments, Afreximbank is on track to help create over 1.3 million barrels per day of refining capacity across Africa, positioning the Gulf of Guinea as an emerging global refining hub.

“This programme demonstrates Africa’s resolve to take charge of its energy future,” said His Excellency Dr Lazarus Chakwera, President of Malawi. “It will reduce import dependency, strengthen regional supply chains, and keep more value within the continent—ultimately delivering more stable and affordable access to refined petroleum products for African citizens.”

Supporting Regional Integration and Economic Resilience

The initiative also serves as a practical platform to advance the goals of the AfCFTA by enabling greater intra-African trade in energy commodities. The financing structure provides governments with mechanisms to mitigate external price shocks and logistical risks by securing supplies from regional refineries.

Afreximbank’s affiliated trading entity, ATDC Minerals (ATMIN), will play an active role in supporting trade and financing activities alongside leading African oil trading companies, reinforcing the bank’s strategic approach to deepening regional value chains.

With Brent crude prices experiencing volatility and freight and insurance costs rising in critical shipping routes such as the Red Sea, Afreximbank’s financing facility offers African economies a more resilient and locally anchored supply chain solution.

The initiative underscores Afreximbank’s commitment to sustainable energy security, economic resilience, and industrial transformation within Africa and the Caribbean.