Latest news with #Intra-African
Zawya
28-04-2025
- Business
- Zawya
Afreximbank launches US$3 Billion Revolving Intra-African Oil Import Financing Programme
To address Africa's persistent reliance on imported refined petroleum products, which accounted for an amount of US$30billion annually in petroleum import costs due to inadequate refining, African Export-Import Bank (Afreximbank) ( has launched a US$3 Billion Revolving Intra-African Oil Trade Financing Programme to finance the purchase of refined petroleum products by African and Caribbean oil buyers. As a revolving facility, we expect it to finance about US$10 billion to US$14 billion of Intra-African petroleum imports. This programme seeks to leverage the growing refining capacity that Afreximbank has helped establish across the continent, while aligning with the objectives of the African Continental Free Trade Area (AfCFTA) agreement, which includes facilitating intra-African trade, promoting industrialisation, and creating jobs on the continent. By deploying innovative trade finance and supply chain solutions tailored to key stakeholders' needs in terms of tenure, price format and logistics requirements, this initiative supports Afreximbank's strategic goals of advancing energy security, strengthening regional value chains, and fostering economic resilience within the continent and the Caribbean. Afreximbank is the largest financier of the Dangote refinery which commenced operations in January 2024 and is also supporting the financing of the 200,000 bpd Lobito Refinery development, building on the progress made on the 60,000 bpd Cabinda Refinery, which it also supported. In addition, the Bank has financed the refurbishment of the 210,000 bpd Port Harcourt Refinery, and recently approved financing in support of the development of Bua Refinery and Azikel Refinery, all in Nigeria. Through these investments, and the continual trade finance support for Société Ivoirienne de Raffinage (SIR), Cote d'Ivoire, Afreximbank is on its way to creating over 1.3 million bpd refining capacity and helping to convert the Gulf of Guinea from an exporter of crude oil into an important refining hub for the continent and the world. Key products to be traded under the programme are refined petroleum products including but not limited to Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), Heavy Fuel Oil (HFO), Jet Fuel, and Kerosene. The eligible exporters are refineries operating in Africa. The US$3 billion Revolving Intra-African Oil Import Financing Programme is intended to mainly provide critical trade finance to oil traders (both African and international), banks, and Governments – represented by their Ministry of Finance or Ministry of Petroleum Resources/Energy – and state-owned enterprises mandated to import refined petroleum products, who seek to source refined products from African Refineries for onward consumption within the continent and export opportunities as may be applicable. Afreximbank, affiliated trading entity ATDC Minerals (ATMIN) will also participate actively in the trading and financing activities of the leading African oil trading companies with long term relationship with Afreximbank who are also expected to support this effort. An approved applicant will be able to request utilization under the Global Limit within allocated sub-limits upon KYC clearance and satisfactory completion of conditions precedent as follows: Issuance/Confirmation of Letters of Credit or any acceptable trade instrument with refineries in Africa as beneficiaries Discounting of Letters of Credit or any acceptable trade instrument to the benefit of refineries in Africa Prepayment and direct advances to eligible refineries in Africa Commenting on the launch, Professor Benedict Oramah, President and Chairman of the Board of Directors, Afreximbank, said that the programme 'would galvanise efforts towards making the Gulf of Guinea a key refining hub. Whilst the programme will have a direct impact on the volume of the refined petroleum products produced and consumed in Africa, it will also have a multiplier effect on the downstream petroleum value chain as it will catalyse critical investments in shipping and marine logistics for intra and extra African trade of crude oil and refined products. The multiplier effect will also be seen in marine cargo insurance and other ancillary businesses within the sector. We want to see an increased proportion of the about 4 mbpd of crude oil produced in the Gulf of Guinea refined in Africa.' Also commenting on the initiative, His Excellency Dr. Lazarus Chakwera, President of the Republic of Malawi, said: 'This programme is a clear demonstration of Africa's resolve to take charge of its own energy future. We commend Afreximbank for this timely intervention, which stands to benefit African countries like Malawi by reducing import dependency, strengthening regional supply chains, and keeping more value within the continent. Most importantly, it will deliver real impact to our citizens by ensuring more stable and affordable access to refined petroleum products, which are essential to Malawians' daily life and economic productivity.' Distributed by APO Group on behalf of Afreximbank. Follow us on: Twitter Facebook LinkedIn Instagram About Afreximbank: African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra- and extra-African trade. For over 30 years, the Bank has been deploying innovative structures to deliver financing solutions that support the transformation of the structure of Africa's trade, accelerating industrialisation and intra-regional trade, thereby boosting economic expansion in Africa. A stalwart supporter of the African Continental Free Trade Agreement (AfCFTA), Afreximbank has launched a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the AfCFTA. Working with the AfCFTA Secretariat and the AU, the Bank has set up a US$10 billion Adjustment Fund to support countries effectively participating in the AfCFTA. At the end of December 2024, Afreximbank's total assets and contingencies stood at over US$40.1 billion, and its shareholder funds amounted to US$7.2 billion. Afreximbank has investment grade ratings assigned by GCR (international scale) (A), Moody's (Baa1), China Chengxin International Credit Rating Co., Ltd (CCXI) (AAA), Japan Credit Rating Agency (JCR) (A-) and Fitch (BBB). Afreximbank has evolved into a group entity comprising the Bank, its impact equity fund subsidiary called the Fund for Export Development Africa (FEDA), and its insurance management subsidiary, AfrexInsure (together, "the Group"). The Bank is headquartered in Cairo, Egypt.
Zawya
11-04-2025
- Business
- Zawya
Afreximbank commissions first-of-its-kind African Trade Centre in Abuja, Nigeria - marking a new era for Intra-African trade
Multilateral Bank African Export-Import Bank (Afreximbank) ( has officially commissioned its first Afreximbank African Trade Centre (AATC) today in Abuja, Nigeria, ushering in a transformative era for trade and investment in Africa. During the grand commissioning ceremony, speakers, including Hon. Dr. George Akume, Secretary to the Government of Federation, Nigeria representing H. E. Bola Ahmed Tinubu GCFR, President and Commander-in-Chief of the Armed Forces, The Federal Republic of Nigeria, highlighted the AATC's strategic importance, its pivotal role in shaping Africa's economic future and the significant impact it is poised to make on Africa's trade and investment landscape. Speaking at the Ceremony, Dr. Akume stated, 'Afreximbank African Trade Centre (AATC) is a landmark project that embodies our shared commitment to advancing Intra-African Trade, fostering economic integration and unlocking a vast potential of our continent. This occasion is a realisation of a bold vision for Africa's economic future. AATC stands as a testament to the power of collaboration, resilience and forward-thinking leadership. It is more than a physical structure; it is the beginning of innovation, a hub for entrepreneurship and a catalyst for sustainable development. He added, 'This centre will serve as a critical platform for trade facilitation, capacity building and investment promotion – key pillars of Africa's economic transformation. Afreximbank's role in shaping Africa's trade landscape cannot be overstated because the institution has consistently demonstrated its commitment to breaking down barriers, bridging financing gaps and empowering African businesses to be competitive. All these have been accomplished through flagship projects such as the AfCFTA adjustment fund that is managed by Afreximbank's subsidiary, Fund for Export Development in Africa (FEDA), PAPSS and other Trade Finance Programmes. The AATC located in Abuja represents yet another milestone in this journey and this aligns perfectly with Nigeria's strategic priorities under the Federal Government's eight-point agenda, particularly in the areas of job creation, economic diversification, and regional integration. As we commission this remarkable edifice today, let us renew our resolve to be the stronger, more interconnected and prosperous Africa.' Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, echoed this sentiment, remarking, 'The Abuja AATC is the first of several AATCs being developed across Africa and the Caribbean. Some would be Afreximbank owned while others would be supported through a franchise-scheme. With these, we expect to create a sizeable network of AATCs that will act as the lighthouses to guide the interconnections and flow of trade and investments within continental Africa and between Africa and Caribbean regions. This AATC Abuja has been a 41-month journey, one built on hope and determination. Like the other AATCs, the Abuja AATC would serve a multi-purpose goal; it will serve as a platform for fostering deeper regional and continental integration and house Afreximbank's permanent regional office, bringing a three-decade-old aspiration to fruition. This AATC will also offer a technology incubation hub, an SME incubation facility, a Digital Africa Trade Gateway, a conference and exhibition facility and a business hotel.' Prof. Orama thanked the Federal Government of Nigeria for its support noting that the relationship between the Bank and Nigeria has been truly mutually beneficial and most cordial. 'Over the last three decades, successive governments have accorded unflinching support to Afreximbank, responding most positively to capital calls, creating a congenial environment for its smooth operations while providing the Bank significant domestic policy support that helped to execute many of the development programmes in Nigeria.' He said. With the opening of the Abuja AATC, Afreximbank continues its mission to promote intra-African trade and investment opportunities, laying the groundwork for a more prosperous and integrated African economy. Over 500 distinguished guests attended the commissioning ceremony, notably, Hon. William F. Duguid, J.P. Senior Minister, Prime Minister's Office, Republic of Barbados, Hon. Sylvester Grisby, Minister of State for Presidential Affairs, Liberia, Hon. Adebayo Olawale Edun, Minister of Finance and Coordinating Minister of the Economy, Nigeria and his counterpart, Hon. Dr. Jumoke Oduwole MFR, Minister of Trade and Investment, Federal Ministry of Trade and Investment, Nigeria as well as Nigeria's former Vice President Hon. Namadi Sambo. Hon. Bockaire Kalokoh, Deputy Minister of Finance of Sierra Leone and Hon. Sheilla Chikomo, Deputy Minister Foreign Affairs and International Trade, Zimbabwe represented their respective countries. The event was also well attended by business leaders led by billionaire entrepreneur Mr. Aliko Dangote, Founder and Chief Executive of the Dangote Group, Mr Tony Elumelu, Chairman of Transcorp Group, policymakers, pan-African CEOs, and entrepreneurs. Their presence showcased a shared vision and determination to enhance trade across Africa, as they pledged to work together to leverage the AATC for the continent's economic transformation. The Abuja AATC comprises two interconnected nine-storey towers. One tower features world-class commercial A-grade office spaces, a trade and exhibition centre, a conference centre, a technology and SME incubator, a Digital Trade Gateway and a trade information services hub. The adjoining tower boasts a 148-room business hotel, seminar and meeting rooms, a wellness centre, a restaurant and other ancillary facilities. These features are designed to provide a comprehensive ecosystem for trade and business activities, catering to the diverse needs of African businesses. It will also host office spaces for local and international financial institutions and policy organisations, ensuring a complete support system for trade and business activities. The AATC building is expected to achieve gold - and potentially platinum - Leadership in Energy and Environmental Design (LEED) certification by the United States Green Building Council (USGBC), a globally recognised standard for sustainable building design and construction. This certification will make the Abuja AATC one of the few certified buildings in Nigeria and West Africa, underscoring its commitment to environmental sustainability. The global architect Messrs SVA International developed a multifaceted global design, drawing inspiration from the concept of a bazaar, which reflects the vibrant feature of daily life in many African cities. Construction of the USD120 million project commenced in November 2021 on a prime piece of land measuring 5,856 square meters and achieved completion in 41 months. The Abuja Afreximbank African Trade Centre (Abuja AATC) is the first of seven planned AATCs across Africa, including Kampala, Uganda, Harare, Zimbabwe, Cairo, Egypt, Yaoundé, Cameroon, Tunis, Tunisia, and Kigali, Rwanda. In addition, Afreximbank recently broke ground in Bridgetown, Barbados, to construct the first AATC outside of Africa. Through franchising and licensing arrangements, the Bank intends to partner with relevant institutions and economic development organizations to establish non-Bank owned ATCs in the rest of Global Africa. These AATCs will serve to link buyers, sellers, suppliers, service providers, enterprises, governments, chambers of commerce, financial institutions, economic development organisations and the general African and global trade and investment community. Distributed by APO Group on behalf of Afreximbank. About Afreximbank: African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra- and extra-African trade. For over 30 years, the Bank has been deploying innovative structures to deliver financing solutions that support the transformation of the structure of Africa's trade, accelerating industrialisation and intra-regional trade, thereby boosting economic expansion in Africa. A stalwart supporter of the African Continental Free Trade Agreement (AfCFTA), Afreximbank has launched a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the AfCFTA. Working with the AfCFTA Secretariat and the AU, the Bank has set up a US$10 billion Adjustment Fund to support countries effectively participating in the AfCFTA. At the end of December 2024, Afreximbank's total assets and contingencies stood at over US$40.1 billion, and its shareholder funds amounted to US$7.2 billion. Afreximbank has investment grade ratings assigned by GCR (international scale) (A), Moody's (Baa1), China Chengxin International Credit Rating Co., Ltd (CCXI) (AAA), Japan Credit Rating Agency (JCR) (A-) and Fitch (BBB). Afreximbank has evolved into a group entity comprising the Bank, its impact fund subsidiary called the Fund for Export Development Africa (FEDA), and its insurance management subsidiary, AfrexInsure (together, "the Group"). The Bank is headquartered in Cairo, Egypt.
Zawya
07-04-2025
- Business
- Zawya
Time for Africa to rise to Trump's tariff challenge
As US President Donald Trump's so-called reciprocal tariffs took effect, sending shockwaves around the world, the reactions by global leaders were both consistent and varied. As they condemned the United States' attack on a global trading system, which has, over the decades, tried to create a fair balance of returns from the wealth generated by commerce, many in the Global North, were also ready to fight back with equal force. China, by far the country facing the highest US tariffs at 65 percent, fired back imposing its own 37 percent on US imports. In sharp contrast, African countries, even those targeted with the lowest tariff of 10 percent, cringed in fear, looking more like a rabbit shocked by the headlamps in night traffic. In the ensuing confusion, prices of cocoa, coffee and sugar futures plunged an average three percent on Thursday as traders girded against the likely impact on demand, were producer countries to retaliate. One could argue that Africa's posture of 'do nothing' is justified. Heavily dependent on demand for its raw produce by the world's largest consumer market, the continent lacks a unified or credible response to Trump. Intra-African trade is still miniscule and populations too poor to replace the lost demand if governments shut out the US. Even if they tried, the infrastructure to facilitate trade across borders cost efficiently barely exists beyond subregional groupings. Africa's predicament is also a lesson in contrasts. By any measure, China will take the biggest blow from Trump's tariffs. Read: Donald Trump is only telling us to make sense and be seriousYet, even as it joined the global powers in condemning Trump's attack on the world trade system, Beijing was fairly insulated against the worst of the US action. China has, over the years, developed a huge and resilient internal market that can help the country rise above the turbulence that US tariffs might create. They have been preparing for this moment and that strategy is set to pay off in the emerging crisis. In the short term, Africa might not have much leverage in terms of what it can throw back at the US and the instinctive reaction might be to lobby for exemptions. But that is not to say the continent is completely lacking in options. The most logical response with a huge pay-off down the curve would be to get moving on implementing the African Continental Free Trade Area, AfCFTA, by engaging in whatever trade is possible within the existing infrastructure. Africa needs to trade more with itself, establish critical soft and hard infrastructure such as roads, rail and waterways; financial institutions such as credit rating agencies, development banks and securities exchanges. This should be followed by a departure from reliance on exports of raw materials, in favour of industries that first produce goods consumed in Africa. More developed regional value chains will make the continent less dependent on international markets, support currency stability and provide the punch to negotiate new partnerships. The generous mineral endowment should be used as a bargaining chip to force relocation of manufacturing capacity to Africa, to increase the continent's share of proceeds from kits mineral wealth. Trump hopes that he will trigger multinationals to repatriate manufacturing capacity and jobs to the US. That can be reverse engineered. © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (
