The African Export-Import Bank (Afreximbank) has launched a US$3 Billion Revolving Intra-African Oil Trade Financing Programme to finance the purchase of refined petroleum products by African and Caribbean oil buyers.
- •Africa’s oil imports cost about US$ 30billion annually due to inadequate refining on the continent.
- •The multilateral institution projects the revolving fund will finance US$10 billion to US$14 billion of Intra-African petroleum imports.
- •Afreximbank is the largest financier of the Dangote Refinery and is also financing the 200,000 bpd Lobito Refinery, the refurbishment of the 210,000 bpd Port Harcourt Refinery, among other oil projects in the Gulf of Guinea.
“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,” Professor Benedict Oramah, President and Chairman of the Board of Directors, Afreximbank said during the launch.
Eligible beneficiaries of the revolving fund’s trade financing include oil traders, banks, governments, and state-owned enterprises. Eligible exports are refineries operating in Africa.
Afreximbank’s investments in the Gulf of Guinea aim at converting the oil-rich region from an exporter of crude oil into an important refining hub for the continent and the world with over 1.3 million bpd refining capacity.
Among the conditions for approved applicants include letters of credit with, or prepayment and direct advances made to eligible refineries.
