Afreximbank has launched a $3 billion Revolving Intra-African Oil Trade Financing Programme to address Africa’s heavy reliance on imported refined petroleum, which costs around $30 billion annually due to limited local refining capacity.
The initiative aims to support African and Caribbean oil buyers in sourcing refined products while promoting regional refining development.
This revolving facility is expected to finance between $10 billion and $14 billion in intra-African petroleum imports over time.
It aligns with the African Continental Free Trade Area (AfCFTA) goals, including boosting trade, driving industrialization, and creating jobs.
Afreximbank’s efforts are complemented by its extensive work in developing Africa’s refining capacity, having already supported major projects such as the Dangote refinery, which began operations in January 2024.
By offering innovative trade finance solutions—including flexible payment terms, pricing options, and logistics support—the programme strengthens energy security, builds regional value chains, and enhances economic resilience across Africa and the Caribbean.
Afreximbank is backing key projects like the 200,000 bpd Lobito Refinery and the 60,000 bpd Cabinda Refinery, alongside funding for Nigeria’s Port Harcourt Refinery and the Bua and Azikel refineries.
These investments are expected to increase Africa’s refining capacity by over 1.3 million barrels per day, positioning the Gulf of Guinea as a leading refining hub.
Under the programme, African refineries will supply products including Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), Heavy Fuel Oil (HFO), Jet Fuel, and Kerosene.
The $3 billion facility will primarily support African and international oil traders, banks, governments, and state-owned enterprises importing refined products for domestic use or export.
Afreximbank’s trading arm, ATDC Minerals (ATMIN), will actively engage with trusted oil trading partners to drive the initiative forward.
Applicants will gain access to the facility upon passing Know Your Customer (KYC) checks and fulfilling all necessary requirements, such as issuing or confirming Letters of Credit and prepayments to eligible African refineries.
Professor Benedict Oramah, President and Chairman of Afreximbank, highlighted the programme’s potential to transform the Gulf of Guinea into a vital refining hub, boosting local refined petroleum production and stimulating investment in related sectors such as marine logistics, shipping, and cargo insurance.
The initiative is expected to help refine more of the region’s 4 million barrels per day of crude oil within Africa.
Malawi’s President, Dr. Lazarus Chakwera, praised the programme, calling it a bold step toward African energy independence.
He emphasized its potential to reduce reliance on imports, strengthen regional supply chains, and ensure more affordable and reliable access to refined petroleum products across the continent.
