The African Export-Import Bank (Afreximbank) has launched a $3 billion renewable intra-African oil trade financing program to fund the purchase of refined petroleum products by African and Caribbean oil buyers.
The goal of the program is to address Africa's persistent dependence on imported refined petroleum products, which account for $30 billion per year in oil import costs due to inadequate refining capacity.
As a renewable facility, it is expected to finance approximately $10 to $14 billion in intra-African oil imports.
This program aims 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 industrialization, and creating jobs on the continent.
By deploying innovative trade and supply chain financing solutions tailored to the needs of key stakeholders in terms of duration, price format, and logistical requirements, this initiative supports Afreximbank's strategic goals of promoting energy security, strengthening regional value chains, and fostering economic resilience on the continent and in the Caribbean.
The main products traded under the program are refined petroleum products, including Premium Motor Spirit (PMS), automotive diesel oil (AGO), heavy fuel oil (HFO), jet fuel, and kerosene. Eligible exporters are refineries operating in Africa.
The African Export-Import Bank (Afreximbank) is the leading pan-African multilateral financial institution dedicated to financing and promoting intra- and extra-African trade.
