The African Export-Import Bank (Afreximbank) has introduced a US $3bn financing initiative designed to support African and Caribbean countries in securing refined petroleum products from within the continent.
The new facility, known as the Revolving Intra-African Oil Trade Financing Program, is exclusively aimed at supporting the importation of petroleum products sourced from African-based refineries. The Cairo-headquartered bank estimates that the platform will facilitate imports worth between US $10bn and US $14bn, significantly reducing the continent’s reliance on external fuel markets.
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Revolving Intra-African Oil Trade Financing Program
Afreximbank noted that Africa currently spends an estimated US $30bn annually on petroleum product imports, primarily due to insufficient refining capacity. The new program seeks to change this by leveraging domestic refineries and strengthening regional supply chains.
“This initiative aligns with the goals of the African Continental Free Trade Area (AfCFTA) by promoting intra-African commerce, encouraging local industrialization, and creating employment opportunities,” the bank said in a statement.
According to the bank, its investments are contributing to the creation of over 1.3 million barrels per day (bpd) of refining capacity across the continent. Notable projects include refineries in Angola, Côte d’Ivoire, and Nigeria, including the Dangote refinery, which began operations last year and is currently the largest in Africa with a capacity of 650,000 bpd.
The financing mechanism is intended to support a wide range of stakeholders, including African and international oil traders, government ministries, and state-owned enterprises, provided the refined products are sourced from within Africa. Afreximbank President and Chairman Prof. Benedict Oramah emphasized that the initiative will generate a ripple effect throughout the energy sector.
“Beyond increasing refined fuel availability, this program will stimulate vital investments in shipping, marine logistics, and related services such as cargo insurance,” Oramah said.
He added that the bank aims to significantly increase the proportion of crude oil produced in the Gulf of Guinea that is refined domestically. Malawian President Lazarus Chakwera welcomed the initiative, describing it as a crucial step toward energy self-sufficiency.
“This program is a timely intervention that will reduce our dependency on fuel imports, enhance regional supply chains, and keep more value within the continent,” he said.
President Chakwera further noted that the initiative promises tangible benefits for citizens, including more stable and affordable access to fuel, which is essential for both daily living and economic activity.
