Afreximbank UnveilsUS$3 Billion Credit Facility to...

Afreximbank UnveilsUS$3 Billion Credit Facility to Boost Intra-African Fuel Trade

Zim Now Writer

The African Export-Import Bank has launched a US$3 billion revolving credit facility aimed at enabling African and Caribbean countries to source petrol, diesel, jet fuel, and other refined products from African refineries more efficiently.

The Cairo-based lender expects the facility—known as the Revolving Intra-African Oil Import Financing Programme—to unlock between US$10 billion and US$14 billion in trade finance over the next three years. The move is part of a broader effort to reduce the continent’s estimated US$30 billion annual fuel import bill and enhance regional self-sufficiency in energy.

Afreximbank said the facility would help oil-dependent economies better withstand global price shocks and supply disruptions, particularly amid falling crude prices and rising freight and insurance costs.

Brent crude has dropped over 20% since mid-January due to concerns over global trade slowdowns and shifting supply dynamics. In the meantime, renewed Houthi attacks in the Red Sea have led to a spike in maritime insurance premiums, adding hundreds of thousands of dollars to typical fuel cargo costs.

By facilitating purchases from nearby refineries and offering upfront credit support, Afreximbank aims to cushion governments and fuel importers from external market volatility.

The initiative is part of the bank’s larger strategy to ramp up regional refining capacity. Afreximbank is the largest financier of Nigeria’s 650,000-barrel-per-day Dangote Refinery and has also supported the rehabilitation of the Port Harcourt oil complex. It is arranging funding for additional plants in Angola and Côte d’Ivoire, which together could add about 1.3 million barrels per day in refining output.

“The programme will galvanize efforts towards making the Gulf of Guinea a key refining hub,” said Afreximbank President Benedict Oramah in a statement on Monday.

The bank will support the programme by issuing or confirming letters of credit, discounting trade instruments, and providing advances to energy ministries, state fuel importers, and private traders sourcing from African refineries.

In addition to boosting regional trade, the credit line aligns with the objectives of the African Continental Free Trade Area, which seeks to enhance intra-African commerce and industrialisation.

As part of its energy market expansion, Afreximbank will also hold a controlling stake in Atmin, a new oil trading company launched by former Shell traders to focus on the African oil market, sources familiar with the matter said.