African Export-Import Bank has launched a $3 billion revolving credit facility aimed at reducing Africa’s dependence on imported refined petroleum products. The initiative is expected to finance between $10 billion and $14 billion in intra-African fuel trade over the next three years, providing a significant boost to regional refining capacity and economic resilience.
The programme, known as the Revolving Intra-African Oil Trade Financing Programme, is designed to enable African and Caribbean buyers to source petrol, diesel, jet fuel, and other refined products from refineries within the continent. This move addresses the continent’s substantial $30 billion annual fuel import bill, largely attributed to inadequate local refining infrastructure.
Afreximbank’s strategy aligns with the objectives of the African Continental Free Trade Area , which seeks to deepen intra-African trade, promote industrialisation, and create employment opportunities. By facilitating the procurement of refined products from African refineries, the bank aims to strengthen regional value chains and enhance energy security.
The facility will offer trade finance solutions tailored to the needs of key stakeholders, including governments, state-owned enterprises, and private sector entities involved in the importation of refined petroleum products. These solutions encompass letters of credit, trade advances, and the discounting of trade instruments, thereby providing flexible financing options to support intra-African fuel trade.
Afreximbank has been instrumental in financing several major refinery projects across the continent. Notably, it is the largest financier of Nigeria’s 650,000 barrels per day Dangote refinery, which commenced operations in January 2024. The bank has also supported the refurbishment of the 210,000 barrels per day Port Harcourt refinery and is involved in the development of the 200,000 barrels per day Lobito refinery and the 60,000 barrels per day Cabinda refinery in Angola. Additionally, Afreximbank is financing the Bua and Azikel refineries in Nigeria, contributing to a combined refining capacity of approximately 1.3 million barrels per day.
The establishment of the $3 billion credit facility is expected to have a multiplier effect on the downstream petroleum sector. By catalysing investments in shipping, marine logistics, and related services, the programme aims to enhance the efficiency of intra-African and extra-African trade in crude oil and refined products.
