The African Export-Import Bank (Afreximbank) has launched a $3 billion revolving credit facility to help buyers across Nigeria, Africa, and the Caribbean access refined petroleum products from within the continent. The initiative is expected to transform the region’s energy trade landscape by improving access to locally refined fuel, reducing the continent’s heavy dependence on imported fuels from outside Africa.
According to a statement from the bank, the credit facility is expected to enable between $10 billion and $14 billion in trade finance over the next three years. It aims to address Africa’s estimated $30 billion annual fuel import bill, offering governments and traders a more stable and cost-effective alternative amid global oil price volatility and rising shipping costs.
The new programme, titled the Revolving Intra-African Oil Import Financing Programme, is part of Afreximbank’s broader strategy to boost regional refining capacity and promote intra-African trade, aligned with the goals of the African Continental Free Trade Area (AfCFTA).
“By providing innovative trade finance solutions tailored to the needs of African buyers, this programme will improve access to refined petroleum products and help shield economies from global price shocks,” said Professor Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank. He added that the bank wants to see a higher percentage of the 4 million barrels of crude oil produced daily in the Gulf of Guinea refined on the continent.
Professor Oramah emphasised that the programme is designed not only to improve fuel access but also to stimulate the entire downstream petroleum value chain, from shipping and logistics to marine cargo insurance and storage infrastructure. According to him, the initiative will also have a direct impact on jobs and industrialisation, helping to retain more value within African economies.
Eligible participants in the financing programme include African and international oil traders, commercial banks, government ministries, and state-owned enterprises involved in fuel importation. The programme will cover products such as petrol (PMS), diesel (AGO), jet fuel, kerosene, and heavy fuel oil, among others. All products will be sourced from refineries located within Africa.
Afreximbank is already a key financier of several major refinery projects across the continent. These include Nigeria’s 650,000 bpd Dangote Refinery, the 210,000 bpd Port Harcourt Refinery, the 200,000 bpd Lobito Refinery in Angola, and the 60,000 bpd Cabinda Refinery, among others. The bank is also supporting the development of BUA and Azikel refineries in Nigeria and finances Société Ivoirienne de Raffinage in Côte d’Ivoire.
Through these investments, the bank is targeting over 1.3 million barrels per day in refining capacity and aims to reposition the Gulf of Guinea as a key refining hub for both African and international markets.
The launch of the programme comes at a time when global fuel logistics have been hit by renewed insecurity. Insurance and freight costs have surged in the Red Sea corridor due to Houthi attacks and retaliatory US airstrikes in Yemen. Reuters reported that insurance premiums for ships have risen sharply, adding hundreds of thousands of dollars to each cargo.
By encouraging intra-African sourcing, the programme seeks to limit the budget shocks caused by such external developments, offering more predictable and affordable fuel access for countries like Nigeria and Malawi.
Malawian President Dr. Lazarus Chakwera welcomed the initiative, describing it as a bold step toward energy independence for African nations. “This programme is a clear demonstration of Africa’s resolve to take charge of its own energy future,” he said. “It will reduce import dependency, strengthen supply chains, and improve access to affordable fuel for our people.”
