Afreximbank issues major aid for African refineries

African Export-Import Bank has released a US$3bn revolving credit line to simplify the sourcing of petrol, diesel, jet fuel and other products from African refineries

Besides providing a safeguard against current geoplitical tensions and tariff uncertainties, the move will expectedly bring some relief for the African and Caribbean buyers as it takes the pressure off of nearly a US$30bn fuel import bill that the region has to bear annually. 

The bank believes that the aid might give the facility the much needed push to generate around US$10-14bn of trade finance over the initial three years. 

This comes as part of the Revolving Intra-African Oil Import Financing Programme.

Key refining hub

In a bid to boost regional processing capacity, Afreximbank has also been the largest financier of Nigeria’s 650,000-barrel-per-day Dangote refinery. It has contributed to the revamping of Nigeria's Port Harcourt oil complex as well. Also arranging funding for plants in Angola and Ivory Coast, Afreximbank's support could add around 1.3  mn  bpd of refining capacity.

"The programme will galvanise efforts towards making the Gulf of Guinea a key refining hub," Afreximbank President Benedict Oramah said in a statement on Monday.

According to Reuters, Afreximbank will also be a controlling shareholder of Atmin, a new trading house set up by former Shell oil traders to focus on African oil trading. 

Recently, Iran has expressed keenness in exporting petrochemicals to AfricaIran has expressed keenness in exporting petrochemicals to Africa with an aim to strengthen strategic partnership between the two countries given the current shifts in global power dynamics.