The African Export–Import Bank (Afreximbank) has dedicated $3 billion to finance the commerce of refined oil merchandise inside the continent and cut back Africa’s dependence on gasoline imports.
An Government Vice-President at Afreximbank, Kanayo Awani disclosed this on Monday, whereas talking at an power convention in Cape City, South Africa.
As reported by Reuters, Awani mentioned the funding bank is dedicated to boosting Africa’s refining capability and inspiring the commerce of refined oil merchandise inside the continent.
He mentioned the initiative will help the commerce of key merchandise resembling premium motor spirit, automotive fuel oil, heavy gasoline oil, jet gasoline, and kerosene beneath a revolving intra-African oil importing financing scheme.
“The time has come for Africa to take management of its power future,” Awani declared, highlighting the continent’s reliance on exterior markets regardless of being wealthy in crude oil and pure fuel.
He famous that Africa at the moment exports about 80% of its crude oil and 45% of its pure fuel, because the continent lacks the infrastructure and capability to refine a lot of it regionally.
He added that the majority of sub-Saharan Africa’s refineries are outdated and function beneath capability, forcing nations to spend roughly $30 billion yearly on petroleum product imports.
Afreximbank’s latest funding in Africa’s oil and fuel sector
Afreximbank is a key investor in Africa’s oil and fuel sector and has backed main initiatives just like the 650,000 barrels-per-day Dangote refinery and Angola’s Lobito and Cabinda refineries.
Reuters reported that the bank’s investments have helped Nigeria alone develop its refining capability to1.3 million barrels per day, whereas additionally remodeling the Gulf of Guinea right into a strategic refining hub for the continent.
“Our purpose is to help 3 million barrels per day of refining capability within the close to to medium time period — that’s our ambition,” Awani instructed Reuters.
In the meantime, as Africa’s inhabitants grows and economies increase, the demand for cleaner fuels can be set to rise. A joint report by power consultancy CITAC and Puma Power projected a 56% enhance in demand for cleaner fuels by 2040, reaching 142 million metric tons from 2022 ranges.
What you need to know
- Afreximbank’s new financing pledge may reshape Africa’s power future and cut back the continent’s vulnerability to world provide chain shocks and worth volatility.
- Nairametrics reported that Nigeria is changing into a refining hub in West Africa with the approaching on stream of the Dangote Petroleum Refinery FTZ and the rising variety of new refineries beneath development within the nation.
- Nevertheless, analysts say Nigeria can solely achieve from this improvement if the nation will increase crude oil manufacturing. The nation at the moment struggles to take care of a each day output of 1.5 million barrels, regardless of the federal government’s goal of two.06 Mbpd.
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