The Fund for the Development of Exports in Africa (FEDA), a subsidiary investment of Afreximbank, announced a few days ago its investment in the Cabinda Refinery, which is being constructed by Gemcorp Holdings in partnership with Sonangol.
Investment by Afreximbank comes shortly after Gemcorp, Afreximbank and Africa Finance Corporation successfully led the raising of a project financing debt valued at $335 million in July of this year. According to a statement from FEDA accessed by Jornal de Angola, with this additional investment, the Afreximbank Group demonstrates its ability to invest across the entire capital structure and provide unparalleled support for critical infrastructure development across the continent.
The Cabinda Oil Refinery is an infrastructure with the capacity to refine 60,000 barrels per day (bpd). In the initial phase, the Cabinda refinery, seen as one of Africa’s largest crude oil producers, will refine 30,000 barrels of oil per day.
The refinery aims to process Angola’s crude oil into a variety of petroleum products, including diesel, gasoline, naphtha, and aviation fuel, for local consumption and export.
The statement indicates that upon completion of the infrastructure, the Cabinda Oil Refinery will double Angola’s refining capacity, allowing the country, in particular and the region in general, to gradually reduce its dependence on imported refined petroleum products.
Atanas Bostandjiev, the president of Gemcorp Holdings, stated that the company he leads is pleased to play a key role in the construction of the Cabinda Oil Refinery in partnership with Sonangol, Afreximbank, Africa Finance Corporation and FEDA.
“Angola is an oil-rich country with a mission to leverage its resources for the socio-economic benefit of its people. Once completed, the refinery will contribute to unlocking the country’s economic potential as it becomes more self-sufficient for its energy needs,” he noted.
Marlène Ngoyi, the president of FEDA, stated that the investment by the Fund for the Development of Exports in Africa in the Cabinda Oil Refinery demonstrates the institution’s commitment to driving industrialization and import substitution on the continent.
“The project is pivotal to Angola’s plans to further enhance local value addition to its raw resources, enabling the country to meet its refined oil needs and create export opportunities,” she said, highlighting that the refinery also contributes to reducing greenhouse gases by reducing the need to transport raw and refined products to and from Africa.
“The investment aligns with FEDA’s mandate to provide impact-focused capital for development across critical sectors in Africa that are crucial for driving industrialization and the development of value-added exports,” she concluded.
It is worth noting that with this investment, FEDA reaffirms its commitment to supporting the industrialization and economic development of Africa while ensuring environmental sustainability and supporting Angola’s energy transition, enabling the production of cleaner and higher-value refined products to meet up to 20 percent of domestic demand.
