{"id":14977,"date":"2025-05-05T11:07:52","date_gmt":"2025-05-05T11:07:52","guid":{"rendered":"https:\/\/www.oilnewskenya.com\/?p=14977"},"modified":"2025-05-05T11:07:57","modified_gmt":"2025-05-05T11:07:57","slug":"afreximbank-launches-us3-billion-revolving-intra-african-oil-import-financing-programme","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/afreximbank-launches-us3-billion-revolving-intra-african-oil-import-financing-programme\/","title":{"rendered":"Afreximbank launches US$3 Billion Revolving Intra-African Oil Import Financing Programme"},"content":{"rendered":"\n

To address Africa\u2019s persistent reliance on imported refined petroleum products, which accounted for an amount of US$30billion annually in petroleum import costs due to inadequate refining, 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.<\/p>\n\n\n\n

As a revolving facility, we expect it to finance about US$10 billion to US$14 billion of Intra-African petroleum imports. This programme seeks to leverage the growing refining capacity that Afreximbank has helped establish across the continent, while aligning with the objectives of the African Continental Free Trade Area (AfCFTA) agreement, which includes facilitating intra-African trade, promoting industrialisation, and creating jobs on the continent.<\/p>\n\n\n\n

By deploying innovative trade finance and supply chain solutions tailored to key stakeholders\u2019 needs in terms of tenure, price format and logistics requirements, this initiative supports Afreximbank\u2019s strategic goals of advancing energy security, strengthening regional value chains, and fostering economic resilience within the continent and the Caribbean.<\/p>\n\n\n\n

Afreximbank is the largest financier of the Dangote refinery which commenced operations in January 2024 and is also supporting the financing of the 200,000 bpd Lobito Refinery development, building on the progress made on the 60,000 bpd Cabinda Refinery, which it also supported. In addition, the Bank has financed the refurbishment of the 210,000 bpd Port Harcourt Refinery, and recently approved financing in support of the development of Bua Refinery and Azikel Refinery, all in Nigeria. Through these investments, and the continual trade finance support for Soci\u00e9t\u00e9 Ivoirienne de Raffinage (SIR), Cote d\u2019Ivoire, Afreximbank is on its way to creating over 1.3 million bpd refining capacity and helping to convert the Gulf of Guinea from an exporter of crude oil into an important refining hub for the continent and the world.<\/p>\n\n\n\n

Key products to be traded under the programme are refined petroleum products including but not limited to Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), Heavy Fuel Oil (HFO), Jet Fuel, and Kerosene. The eligible exporters are refineries operating in Africa.<\/p>\n\n\n\n

The US$3 billion Revolving Intra-African Oil Import Financing Programme is intended to mainly provide critical trade finance to oil traders (both African and international), banks, and Governments \u2013 represented by their Ministry of Finance or Ministry of Petroleum Resources\/Energy \u2013 and state-owned enterprises mandated to import refined petroleum products, who seek to source refined products from African Refineries for onward consumption within the continent and export opportunities as may be applicable. Afreximbank, affiliated trading entity ATDC Minerals (ATMIN) will also participate actively in the trading and financing activities of the leading African oil trading companies with long term relationship with Afreximbank who are also expected to support this effort.<\/p>\n\n\n\n

An approved applicant will be able to request utilization under the Global Limit within allocated sub-limits upon KYC clearance and satisfactory completion of conditions precedent as follows:<\/p>\n\n\n\n