The fund, structured as a revolving intra-African oil-import financing program, will cover the procurement of key refined products such as premium motor spirit, automotive gas oil, jet fuel, kerosene, and heavy fuel oil, among others. This initiative marks a significant pivot from Afreximbank’s historical role in financing imports from outside the continent, now aligning with Africa’s long-term goal of energy independence.
“The time has come for Africa to take control of its energy destiny,” said Awani, highlighting the urgent need to tackle the continent’s infrastructure and refining deficits.
Addressing a Long-standing Deficit
Africa exports approximately 80% of its crude oil and 45% of its natural gas, yet remains heavily reliant on imported refined products due to a chronic shortage of local refining capacity. This paradox results in an estimated $30 billion annual spend on petroleum imports, driven largely by aging refineries and insufficient storage infrastructure across sub-Saharan Africa.
To shift this dynamic, Afreximbank has invested in major projects like the 650,000 bpd Dangote Refinery in Nigeria and Angola’s Lobito and Cabinda refineries, which are positioned to become significant contributors to Africa’s refining output.
Nigeria alone has seen its refining capacity rise to 1.3 million barrels per day, turning the Gulf of Guinea into a burgeoning regional refining hub. Awani revealed that the bank’s broader ambition is to support 3 million bpd of refining capacity in the near to medium term.
Building Financial Muscle: Africa Energy Bank
Afreximbank is also a leading force behind the establishment of the Africa Energy Bank (AEB), a new institution set to be capitalized at $5 billion. This bank, being created in partnership with the African Petroleum Producers’ Organization (APPO)—a bloc of 18 oil-exporting African nations—will focus on bridging the energy financing gap, especially in the oil and gas sectors.
The AEB is expected to play a vital role in driving long-term investments and addressing structural weaknesses in Africa’s energy financing ecosystem.
Global Oil Market Turmoil Amid Trade Tensions
The announcement from Afreximbank comes at a time of heightened volatility in global oil markets, driven by escalating trade tensions between the U.S. and China. Oil prices slid to near four-year lows yesterday amid fears that President Donald Trump’s sweeping tariff plans could push the global economy toward recession.
Brent crude fell 79 cents (1.2%) to $64.80 per barrel, while U.S. WTI dropped 75 cents (also 1.2%) to $61.24, setting both benchmarks on course for their lowest closes since April 2021.
The situation worsened after China announced retaliatory tariffs on U.S. goods, confirming fears of a full-scale trade war. While energy imports have been exempted from tariffs, analysts warn that rising geopolitical risk and economic uncertainty could continue to weigh on oil prices.
Goldman Sachs, Citi, JPMorgan, and Morgan Stanley have all issued downward revisions to oil price forecasts, with recession risks estimated between 45% and 60% for the U.S. and the global economy over the next 12 months.
Adding to market pressure, OPEC+ has fast-tracked its plan to increase output, now aiming to return 411,000 bpd to the market in May, up from an earlier plan of 135,000 bpd.
Afreximbank’s $3 billion investment signals a transformative shift in Africa’s energy strategy—one that prioritizes self-reliance, infrastructure development, and intra-continental cooperation. While global markets remain uncertain, Africa is clearly moving with renewed focus to secure its energy future, reduce import dependency, and create a sustainable foundation for long-term growth.