Afreximbank, a leading investor in oil and gas ventures, has committed $3 billion to support the purchase of locally refined petroleum products across Africa.

This initiative is part of the bank’s broader strategy to enhance the continent’s refining capabilities.

Currently, Africa exports about 80% of its crude oil and 45% of its natural gas, which makes the continent highly dependent on imports of refined products.

The lack of modern storage facilities and the presence of aging refineries with limited capacity are significant challenges in sub-Saharan Africa’s energy sector.

Kanayo Awani, the executive vice-president of Afreximbank, highlighted the need for Africa to take control of its energy future.

Speaking at an energy conference in Cape Town, South Africa, Awani stated, “The time has come for Africa to take control of its energy destiny.”

The $3 billion earmarked by Afreximbank will be used to finance the purchase of refined products like premium motor spirit, automotive gas oil, heavy fuel oil, jet fuel, and kerosene.

Traditionally, Afreximbank has supported the financing of imports from outside the continent, but with this initiative, it aims to improve the availability of locally refined products.

Afreximbank has already invested in major projects such as the Dangote refinery in Nigeria, which has a refining capacity of 650,000 barrels per day, and the Lobito and Cabinda refineries in Angola.

Despite these efforts, Africa still spends about $30 billion annually on petroleum imports due to a lack of refining capacity.

Awani emphasized the importance of increasing refining capacity, citing Nigeria’s progress with investments that have raised the country’s refining capacity to 1.3 million barrels per day, positioning the Gulf of Guinea as a significant refining hub.

He added, “Our goal is to support 3 million barrels per day of refining capacity in the near to medium term, that is our ambition.”

A report from energy consultancy CITAC and Puma Energy last year predicted that demand for cleaner fuels would grow by 56% by 2040, reaching 142 million metric tons.

This reflects the increasing need for investment in refining infrastructure to meet the continent’s growing energy demands.