CAIRO – The African Export-Import Bank (Afreximbank) announced Monday it is providing $3 billion in financing to help African countries buy refined oil products from one another, aiming to cut reliance on imports from outside the continent.

African nations spend about $30 billion annually importing fuel such as gasoline, diesel and jet fuel due to limited local refining capacity.

The new Revolving Intra-African Oil Import Financing Program is designed to support trade between African countries and strengthen regional supply chains.

It aligns with the goals of the African Continental Free Trade Area (AfCFTA), which seeks to promote intra-African trade, encourage industrialization and create jobs.

Under the program, oil buyers, including governments and businesses, will be able to access financing to purchase fuel directly from African refineries. Key products covered include premium motor spirit (PMS), automotive gas oil (AGO), heavy fuel oil (HFO), jet fuel and kerosene.

Afreximbank has played a major role in boosting Africa’s refining industry. It is the largest financier of the Dangote Refinery in Nigeria, which began operations in January 2024 and is the largest refinery in Africa.

The bank has also supported projects such as the Port Harcourt Refinery refurbishment and the development of new plants in Lobito, Cabinda and Bua.

Professor Benedict Oramah, president and chairman of Afreximbank, said the program will help make the Gulf of Guinea a key hub for refining and trading oil.

He added that it will create jobs and new business opportunities in sectors like shipping, insurance and marine logistics.

“We want to see an increased proportion of the about 4 mbpd of crude oil produced in the Gulf of Guinea refined in Africa,” Oramah said.

Malawi’s President Lazarus Chakwera welcomed the initiative, calling it a strong step toward Africa taking control of its energy future.

He said it would help countries like Malawi lower dependency on foreign fuel, stabilize prices and improve daily life for citizens.

The financing is available to African refineries, oil traders, banks and government agencies that meet Afreximbank’s requirements.