Afreximbank Commits $3 Billion to Intra-Africa Oil Trade in Strategic Push to Cut Import Dependency

The African Export–Import Bank (Afreximbank) has pledged a landmark $3 billion investment to finance the trade of refined petroleum products within Africa—marking a significant step toward ending the continent’s heavy reliance on fuel imports despite being resource-rich in crude oil and natural gas.

Backing Africa’s Refining Ambition

Announced by Kanayo Awani, Executive Vice-President at Afreximbank, during an energy conference in Cape Town, the initiative is part of a broader commitment to strengthen the continent’s refining capacity and catalyze regional energy integration.

“The time has come for Africa to take control of its energy destiny,” Awani stated, as she outlined the revolving oil import financing scheme targeting key products including premium motor spirit, diesel, jet fuel, kerosene, and heavy fuel oil.

Currently, over 80% of Africa’s crude oil and 45% of natural gas is exported, with local refineries unable to meet demand due to poor infrastructure and underutilization. This imbalance has forced African nations to spend more than $30 billion annually on petroleum imports—a figure Afreximbank believes must be reversed.

Nigeria as a Refining Hub

The investment bank’s portfolio already supports major refining projects such as the 650,000 barrels-per-day Dangote Refinery and facilities in Angola’s Lobito and Cabinda. With the Dangote project nearing full operation, Nigeria is positioned as West Africa’s leading refining hub, boasting a refining capacity now estimated at 1.3 million barrels per day.

Afreximbank’s vision is to raise Africa’s collective refining capacity to 3 million barrels per day in the near to medium term, according to Reuters.

This effort aligns with Africa’s broader industrialisation agenda and the goals of the African Continental Free Trade Area (AfCFTA), which seeks to boost intra-African trade and reduce the continent’s exposure to external market shocks.

Clean Energy Demand on the Rise

The $3 billion commitment is also future-focused. As Africa’s population and urbanization accelerate, demand for cleaner fuels is expected to surge. A joint report by CITAC and Puma Energy projects a 56% increase in demand for clean fuels by 2040, with usage rising to 142 million metric tons from 2022 levels.

This places additional urgency on investments in modern, efficient, and environmentally compliant refineries—not just for energy security, but to meet global climate targets and unlock green industrial growth.

Strategic Impact for African Economies

If effectively deployed, this financing scheme could:

• Reduce pressure on foreign exchange markets caused by fuel imports.
  
• Empower African nations to retain more value from their natural resources.
  
• Improve trade flows under the AfCFTA framework.
  
• Mitigate supply chain vulnerabilities exposed during global disruptions.
  

But experts caution that the success of this initiative also hinges on increased crude oil production, particularly in countries like Nigeria, which is struggling to meet its 2.06 million barrels per day target, currently averaging just 1.5 million barrels daily.

The Road Ahead

Afreximbank’s $3 billion oil trade financing plan signals a shift in how African institutions are addressing the continent’s energy paradox. It’s not just about exporting oil—it’s about building the infrastructure, policies, and partnerships to refine, consume, and trade that oil within Africa.

If this momentum is sustained, Africa could emerge not only as a major crude producer but also as a continental refining powerhouse, breaking its historical dependence on imported fuel and reshaping its energy future from within.