Afreximbank allocated $18 billion in loans to replicate the success of the Dangote Refinery across Africa, aiming to boost local refining capacity for crude oil production from the Gulf of Guinea by at least 50%.
In 2023, the African Export-Import Bank (Afreximbank) allocated $18 billion to various projects across Africa, with a strategic focus on enhancing the continent’s refining capacity for crude oil. The goal is to ensure that at least 50% of the approximately 5 million barrels per day of crude oil produced in the Gulf of Guinea is refined within Africa itself.
Key projects supported by Afreximbank include:
- Dangote Refinery and Petrochemical Company: Afreximbank provided substantial support, totaling $2.6 billion, enabling the commencement of operations for the Dangote Refinery, which is the largest single-train oil refinery globally. It has a capacity to process over 650,000 barrels per day of crude oil.
- Nitrogen Fertilizer Plants: The bank backed one of the largest nitrogen fertilizer plants, initially producing 3 million tons of urea fertilizer annually, with plans to increase production to 6 million tons.
- Petrochemical Plant: Afreximbank supported a petrochemical plant producing about a million tons of polypropylene annually.
These initiatives are part of Afreximbank’s broader strategy to foster economic development and industrialization across Africa by investing in critical infrastructure projects. Benedict Oramah, the President of Afreximbank, highlighted that these projects not only contribute to economic growth but also create significant employment opportunities and drive technological advancement within the continent.
Additionally, Afreximbank’s financial performance in 2023 was robust, with disbursements increasing by 8.7% to $18 billion. Total revenues surged by 74.2% to $2.6 billion, and profits rose by 66% to $756 million, indicating the bank’s effective financial management and strategic impact in supporting African development.
Looking forward, Afreximbank aims to expand its influence beyond Africa by collaborating with the CARICOM Secretariat to establish the Caribbean EximBank. This initiative seeks to replicate Afreximbank’s success in financing transformational projects within the Caribbean region, emphasizing the importance of regional development banks in driving local economic growth and infrastructure development.
