Afreximbank Launches $3 Billion Programme to Boost Intra-African Oil Trade and Cut Fuel Import Costs

In a major move to reshape Africa’s energy landscape, the African Export-Import Bank (Afreximbank) has launched a $3 billion Revolving Intra-African Oil Import Financing Programme. The new initiative is set to transform the way African and Caribbean nations source refined petroleum, aiming to reduce dependency on fuel imports from outside the continent.

A Step Toward Energy Independence

The programme is designed to finance the importation of refined petroleum products from African-based refineries, supporting both public and private sector buyers. Over its lifecycle, it’s expected to facilitate between $10 billion and $14 billion in intra-African petroleum trade.

Africa currently spends more than $30 billion annually importing fuel due to insufficient refining capacity. By strengthening local supply chains, Afreximbank hopes to not only cut this cost but also foster regional energy security, job creation, and industrial growth, in line with the goals of the African Continental Free Trade Area (AfCFTA).

Supporting African Refineries

Eligible suppliers under the programme include refineries based within Africa, with the focus on trading products such as:

• Premium Motor Spirit (PMS)

• Automotive Gas Oil (AGO)

• Jet Fuel

• Heavy Fuel Oil (HFO)

• Kerosene

The financing will support governments, state-owned enterprises, oil traders, and financial institutions actively involved in importing these fuels.

Afreximbank is already deeply invested in Africa’s refining infrastructure. Its portfolio includes support for major facilities like:

• Dangote Refinery in Nigeria

• Lobito Refinery (200,000 barrels/day)

• Cabinda, Port Harcourt, Bua, and Azikel refineries

Together, these are set to deliver over 1.3 million barrels per day of refining capacity—positioning the Gulf of Guinea as a powerful regional refining hub.

Innovative Financing Tools

Through its affiliate, ATDC Minerals (ATMIN), Afreximbank will provide trade financing tools including:

• Letters of Credit (LCs)

• Direct prepayments

• Discounting instruments

All applicants will undergo standard due diligence to qualify for access.

Leaders Applaud the Initiative

Afreximbank President, Prof. Benedict Oramah:

“This programme will increase the volume of refined petroleum produced and consumed in Africa, while also unlocking investments in marine logistics, insurance, and other critical downstream services. Our vision is to see a significant portion of the 4 million barrels of oil produced daily in the Gulf of Guinea refined right here in Africa.”

Malawi President, Lazarus Chakwera:

“This is a powerful step toward Africa’s energy independence. By reducing reliance on external imports and keeping more value within the continent, it will strengthen supply chains and improve daily life for citizens—especially in countries like Malawi.”

Final Thoughts

Afreximbank’s new oil import financing programme marks a game-changing moment for Africa’s energy and economic future. By empowering African countries to buy from African suppliers, the bank is championing a more self-sufficient and integrated continent—exactly what the AfCFTA envisioned.