The African Export-Import Bank has launched a $3 billion petroleum products financing programme aimed at supporting up to $14 billion in intra-African and Caribbean fuel trade.
The initiative seeks to address Africa’s dependence on imported refined petroleum products, which accounted for an amount of $30 billion annually due to limited refining capacity. The programme, expected to finance between $10 billion and $14 billion in intra-African petroleum imports, is also aimed at boosting investments in fuel transportation across the continent.
According to Afreximbank, the initiative is designed to capitalize on the continents expanding refining capacity, that Afreximbank has supported, and aligns with the goals of the African Continental Free Trade Area (AfCFTA) agreement. These includes promoting intra-African trade, driving industrialization, and creating jobs.
By deploying innovative trade finance and supply chain solutions tailored to the specific needs of stakeholders, covering tenure, pricing, and logistics, the programme supports Afreximbank’s broader mission to enhance energy security, build resilient regional value chains, and strengthen economic stability across Africa and the Caribbean.
According to the bank, Afreximbank is contributing to the development of over 1.3 million barrels per day (bpd) of refining capacity through its several investments. This effort aims to position the Gulf of Guinea as a future refining hub, cut Africa’s dependence on imported refined petroleum, and boost intra-continental trade.
Speaking at the launch, President and Chairman of the Board of Directors, Afreximbank, Prof. Benedict Oramah, stated that the programme would help galvanize efforts to transform the Gulf of Guinea into a major refining hub.
He stated that, “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 catalyze critical investments in shipping and marine logistics for intra and extra African trade of crude oil and refined products.
He added that, “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 4 million bpd of crude oil produced in the Gulf of Guinea refined in Africa.”
Also commenting on the initiative, President of the Republic of Malawi, Dr. Lazarus Chakwera, described the programme as a clear demonstration of Africa’s determination to take control of its own energy future.
Malawi said, “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.”
