Afreximbank unveils $3 billion oil import facility to strengthen intra-African trade - Trade Treasury Payments

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Afreximbank unveils $3 billion oil import facility to strengthen intra-African trade

In an effort to reduce Africa’s reliance on imported refined fuel from outside the continent, the African Export-Import Bank (Afreximbank) has launched a $3 billion revolving trade finance programme to support intra-African and Caribbean oil transactions.

The new Intra-African Oil Import Financing Programme is designed to facilitate between $10 billion and $14 billion worth of petroleum product imports over time. Its primary focus is to support African and Caribbean buyers sourcing refined petroleum (including petrol, diesel, jet fuel, and kerosene) from refineries based within Africa.

The programme is aligned with the African Continental Free Trade Area (AfCFTA), as it aims to deepen economic integration by expanding intra-African trade.

Eligible beneficiaries include private and state-owned oil traders, commercial banks, and government ministries tasked with energy procurement. The facility will operate through a combination of trade finance instruments such as letters of credit, prepayment arrangements, and direct advances. Afreximbank’s trading affiliate, ATDC Minerals (ATMIN), is also expected to take an active role in executing the programme’s.

Professor Benedict Oramah Afreximbank’s President and Chairman of the Board, said, “[the programme] would galvanise efforts towards making the Gulf of Guinea a key refining hub. Whilst the programme will have a direct impact on the volume of the refined petroleum products produced and consumed in Africa, it will also have a multiplier effect on the downstream petroleum value chain as it will catalyse critical investments in shipping and marine logistics for intra- and extra-African trade of crude oil and refined products. The multiplier effect will also be seen in marine cargo insurance and other ancillary businesses within the sector. We want to see an increased proportion of the about four mbpd of crude oil produced in the Gulf of Guinea refined in Africa.”

Afreximbank has been central to financing an increase in refining capacity across the continent. Notable projects include Nigeria’s Dangote Refinery, the refurbishment of Port Harcourt Refinery, and the development of Bua and Azikel refineries. 

The bank has also backed Angola’s Lobito and Cabinda facilities and continues to finance Société Ivoirienne de Raffinage (SIR) in Côte d’Ivoire. Together, these initiatives are expected to bring over 1.3 million barrels per day of refining capacity online.

His Excellency Dr. Lazarus Chakwera, President of the Republic of Malawi, said, “This programme is a clear demonstration of Africa’s resolve to take charge of its own energy future. We commend Afreximbank for this timely intervention, which stands to benefit African countries like Malawi by reducing import dependency, strengthening regional supply chains, and keeping more value within the continent. Most importantly, it will deliver real impact to our citizens by ensuring more stable and affordable access to refined petroleum products, which are essential to Malawians’ daily life and economic productivity.”

Afreximbank’s total assets and contingencies exceeded US$40 billion as of year-end 2024, underpinned by strong capitalisation and an expanding mandate to facilitate trade across Africa. With the launch of this facility, the bank reinforces its role as a central actor in driving trade-led development under the AfCFTA framework.