To reduce fuel dependency among African and Caribbean nations, the African Export-Import Bank (Afreximbank) has launched a $3 billion revolving credit facility. The initiative is designed to ease access to refined petroleum products, including petrol, diesel, jet fuel and more, sourced from regional refineries. With the continent’s annual fuel import bill exceeding $30 billion, the programme seeks to recalibrate fuel procurement dynamics, enhance intra-African trade finance, and shield governments from the volatility of global oil markets.
Addressing the Fuel Import Crisis
The impetus for this new facility lies in Africa’s acute dependence on imported fuel, driven largely by its limited refining capacity. As both oil-exporting and oil-importing nations contend with erratic crude prices and rising shipping costs, Afreximbank aims to ease pressure on government budgets by offering bank-backed credit lines and promoting regional sourcing. The urgency of the initiative is underscored by ongoing geopolitical tensions, including fears of a global trade war and a recent 20% decline in Brent crude prices.
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Afreximbank estimates that the programme will unlock between $10 billion and $14 billion in trade finance over its first three years, contributing to a more self-reliant oil ecosystem within the continent.
Empowering Local Refineries
Eligible for participation under the new financing scheme are all African refineries, with products to include Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), Heavy Fuel Oil (HFO), jet fuel and kerosene. The facility is expected to catalyse a gradual build-up of domestic refining capacity.
Countries like Nigeria—home to the world’s largest single-train refinery, owned by industrialist Aliko Dangote—and Angola, which is expanding its refining footprint through the $6.6 billion Lobito refinery, exemplify the potential impact of the initiative. Additional investments in existing facilities, such as Nigeria’s Port Harcourt Refinery and the newly approved BUA and Azikel refineries, reinforce efforts to strengthen regional supply chains.
Afreximbank’s broader goal is not merely to reduce fuel import dependency, but to elevate the Gulf of Guinea into a globally competitive refining corridor.
A Catalyst for Trade
The Revolving Intra-African Oil Import Financing Programme is structured to provide essential trade finance across varied tenures, pricing mechanisms and logistical frameworks. It primarily targets oil traders, financial institutions, and government agencies tasked with securing refined products from within Africa.
Benedict Oramah, President of Afreximbank, stated that the facility will influence both the production and consumption of refined fuels in Africa, with a projected multiplier effect on logistics and maritime transport. The resulting improvements in fuel availability are expected to boost productivity and economic resilience across the region.
Malawi’s President, Lazarus Chakwera, hailed the initiative as a “clear demonstration of Africa’s resolve to take charge of its energy future.” By fortifying regional value chains, the facility aims to stabilise fuel access and pricing, ultimately enhancing living standards.
Supporting the African Continental Free Trade Area
In addition, the facility functions as a testbed for the African Continental Free Trade Area (AfCFTA), which aspires to deepen intra-African trade and drive industrialisation. By enabling cross-border fuel trade, Afreximbank’s initiative supports AfCFTA’s objectives and lays the groundwork for greater economic integration.
Afreximbank’s $3 billion credit facility is more than a financing instrument—it is a strategic commitment to regional self-sufficiency. By broadening access to locally refined fuel and expanding trade finance, the programme promises to reshape the continent’s oil supply landscape and strengthen economic collaboration. As Africa advances toward a refining renaissance, global observers are watching closely to see how this bold initiative evolves.
