The African Export–Import Bank (Afreximbank) has pledged $3 billion to support the trade of refined petroleum products across Africa, aiming to reduce the continent’s dependence on imported fuel and strengthen intra-African energy trade.
The announcement was made by Afreximbank Executive Vice President Kanayo Awani at an energy conference in Cape Town, South Africa.
According to Reuters, Awani stressed the importance of enhancing Africa’s refining capacity to better utilize its abundant crude oil and natural gas resources.
The funding will support a revolving intra-African oil import financing program, facilitating the trade of key fuels such as premium motor spirit (petrol), automotive gas oil (diesel), heavy fuel oil, jet fuel, and kerosene.
Awani underscored the urgency of Africa taking control of its energy future, highlighting the paradox of a resource-rich continent that exports around 80% of its crude oil and 45% of its natural gas, while spending nearly $30 billion annually on petroleum imports due to limited refining capacity and outdated infrastructure.
Most sub-Saharan refineries, he noted, are aging and operate below optimal levels, exacerbating the continent’s reliance on foreign markets.
Afreximbank has been instrumental in financing major oil and gas infrastructure projects, including Nigeria’s 650,000 barrels-per-day Dangote Refinery and Angola’s Lobito and Cabinda refineries.
The bank’s support has helped Nigeria increase its refining capacity to 1.3 million barrels per day, positioning the Gulf of Guinea as a key refining hub for the continent.
“Our ambition is to support 3 million barrels per day of refining capacity in the near to medium term,” Awani told Reuters.
With Africa’s population growing and economies expanding, the demand for cleaner fuels is expected to surge.
A joint report by CITAC and Puma Energy projects a 56% increase in demand for cleaner fuels by 2040, reaching 142 million metric tons compared to 2022 levels.
