AFRICA | Afreximbank's US$3 Billion Initiative: A Caribbean-African Energy Partnership

Cairo, Egypt, May 7, 2025 – The African Export-Import Bank (Afreximbank) has launched a groundbreaking US$3 Billion Revolving Intra-African Oil Trade Financing Programme, poised to transform the energy landscape for both African and Caribbean nations currently spending upwards of US$30 billion annually on imported petroleum products.

This revolving facility is expected to finance between US$10-14 billion in petroleum imports, creating a vital trade corridor between Africa's emerging refining hubs and Caribbean markets.

For Caribbean nations traditionally dependent on distant petroleum sources, this programme represents an opportunity to diversify supply chains, enhance energy security, and build stronger economic ties with African partners.

By deploying innovative trade finance and supply chain solutions tailored to stakeholders' specific needs—including flexible tenures, competitive pricing formats, and comprehensive logistics requirements—this initiative aims to advance energy security while strengthening regional value chains across the Atlantic.

Caribbean buyers will gain preferential access to African-refined petroleum products, reducing dependency on traditional suppliers and potentially lowering energy costs across the region.

The programme builds upon Afreximbank's strategic investments in African refining capacity, including the recently operational Dangote refinery, the 200,000 bpd Lobito Refinery development, the 60,000 bpd Cabinda Refinery, the refurbished 210,000 bpd Port Harcourt Refinery, and newly approved financing for Bua and Azikel Refineries in Nigeria.

Through these investments and ongoing support for facilities like Société Ivoirienne de Raffinage in Côte d'Ivoire, Afreximbank is establishing over 1.3 million bpd refining capacity, transforming the Gulf of Guinea into a major refining hub serving both continental and Caribbean markets.

Products available through this programme include Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), Heavy Fuel Oil (HFO), Jet Fuel, and Kerosene—all sourced directly from African refineries. Caribbean buyers will benefit from streamlined access to these essential energy products through established trade channels.

The programme provides critical trade finance to a diverse range of participants: oil traders (both African and international), banks, government entities represented by their Ministries of Finance or Energy, and state-owned enterprises.

Caribbean governments and companies can leverage this initiative to secure stable supply chains for refined petroleum products. Additionally, Afreximbank's affiliated trading entity, ATDC Minerals (ATMIN), will actively participate in trading activities with leading African oil companies maintaining longstanding relationships with Afreximbank.

Approved applicants can access the Global Limit within allocated sub-limits upon satisfying KYC requirements and completing necessary conditions precedent. This includes issuance or confirmation of Letters of Credit with African refineries as beneficiaries, discounting of acceptable trade instruments, and direct advances to eligible African refineries.

Professor Benedict Oramah, President and Chairman of Afreximbank's Board of Directors, emphasized how the programme "would galvanize efforts towards making the Gulf of Guinea a key refining hub," with direct impact on refined petroleum production and consumption in Africa and the Caribbean.

He highlighted the programme's multiplier effect on downstream petroleum value chains, catalyzing investments in shipping, marine logistics, cargo insurance, and other ancillary businesses that will benefit both African and Caribbean economies.

His Excellency Dr. Lazarus Chakwera, President of the Republic of Malawi, praised the initiative as "a clear demonstration of Africa's resolve to take charge of its own energy future," with benefits extending to Caribbean nations through reduced import dependency, strengthened regional supply chains, and greater value retention within partner regions.

Most importantly, it promises to deliver tangible benefits to citizens through more stable and affordable access to essential petroleum products.

This Caribbean-African partnership represents a bold step toward greater energy interdependence and economic resilience for nations on both sides of the Atlantic, creating sustainable pathways for development and cooperation.

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