The African Export–Import Bank (Afreximbank) has announced a $3 billion commitment to fund the trade of refined petroleum products across Africa and reduce the continent’s reliance on imported fuel.
Kanayo Awani, Executive Vice President at Afreximbank, made the announcement during an energy conference in Cape Town, South Africa.
According to Reuters, Awani emphasized that the bank aims to strengthen Africa’s refining capacity and promote intra-continental trade of refined oil products.
He explained that the initiative will facilitate the trade of key fuels like premium motor spirit, automotive gas oil, heavy fuel oil, jet fuel, and kerosene through a revolving intra-African oil import financing scheme.
Awani declared that Africa must now take charge of its energy future, pointing to the irony of its heavy dependence on foreign markets despite its wealth of crude oil and natural gas resources.
He noted that the continent exports about 80% of its crude oil and 45% of its natural gas due to inadequate infrastructure and refining capacity.
He added that most sub-Saharan African refineries are outdated and operate below optimal levels, pushing countries to spend nearly $30 billion every year on petroleum imports.
Afreximbank continues to play a major role in Africa’s oil and gas sector, having financed major projects like Nigeria’s 650,000 barrels-per-day Dangote refinery and Angola’s Lobito and Cabinda refineries.
Reuters also reported that Afreximbank’s support has enabled Nigeria to expand its refining capacity to 1.3 million barrels per day, helping transform the Gulf of Guinea into a key refining hub for Africa.
“Our ambition is to support 3 million barrels per day of refining capacity in the near to medium term,” Awani told Reuters.
As Africa’s population grows and its economies expand, the demand for cleaner fuels will continue to rise. A joint report by CITAC and Puma Energy projects that demand for cleaner fuels will increase by 56% by 2040, reaching 142 million metric tons compared to 2022 levels.
source;nairametrics.com
