By Christian.conteh@awokonewspapesl.com
Freetown, Sierra Leone – In a move to reduce Africa’s heavy 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 boosting regional trade and energy security.
Announced amid rising concerns over Africa’s $30 billion annual fuel import bill, the new initiative is designed to finance the purchase of refined petroleum products by oil buyers across Africa and the Caribbean. The programme is expected to support $10 billion to $14 billion worth of intra-African petroleum trade by leveraging the continent’s growing refinery infrastructure—much of it financed by Afreximbank itself.
“This programme is a strategic intervention to transform Africa from being a net importer of refined fuel into a continent that refines, consumes, and exports its own petroleum products,” said Professor Benedict Oramah, President and Chairman of the Board of Directors at Afreximbank.
The initiative aligns with the goals of the African Continental Free Trade Area (AfCFTA), which include boosting intra-African trade, promoting industrialisation, and creating sustainable jobs. The programme will also offer tailored financial and logistical solutions to meet the needs of governments, banks, oil traders, and refineries operating within the continent.
Afreximbank is already Africa’s largest financier of refinery development, having played a major role in operationalising the Dangote Refinery in Nigeria, which began production in January 2024. The Bank is also supporting the development of the 200,000 barrels-per-day (bpd) Lobito Refinery, and has invested in the 60,000 bpd Cabinda Refinery and the refurbishment of the 210,000 bpd Port Harcourt Refinery. New support has recently been approved for Nigeria’s Bua and Azikel refineries.
In Côte d’Ivoire, the bank continues to provide trade finance for Société Ivoirienne de Raffinage (SIR). Collectively, these investments are expected to contribute over 1.3 million bpd in refining capacity, positioning the Gulf of Guinea as a major refining hub for Africa and beyond.
The financing programme will cover a range of refined petroleum products including Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), Heavy Fuel Oil (HFO), Jet Fuel, and Kerosene. Only African-based refineries will be eligible to export under the programme, which is open to African and international traders, governments, and state-owned enterprises involved in the import of petroleum products.
Approved applicants will access funding through letters of credit, direct advances, and prepayment facilities, subject to Know Your Customer (KYC) compliance and other conditions.
ATDC Minerals (ATMIN), Afreximbank’s affiliated trading entity, will play a key role in facilitating these transactions alongside leading African oil trading companies.
Professor Oramah noted that the initiative will not only stimulate local refinery output but will also boost related sectors. “We anticipate a strong multiplier effect across marine logistics, shipping, insurance, and other critical industries. With 4 million barrels per day of crude oil produced in the Gulf of Guinea, more of it must be refined within Africa,” he said.
Backing the programme, President Lazarus Chakwera of Malawi described it as a landmark initiative for Africa’s energy independence. “This is a clear demonstration of Africa’s resolve to take charge of its own energy future,” he said. “It will reduce our import dependence, strengthen regional supply chains, and deliver tangible benefits to citizens through more stable and affordable access to fuel.”
The programme marks a major step toward a more self-sufficient and industrialised African energy sector, potentially reshaping the continent’s role in the global petroleum economy. CC/5/5/2025
