More refineries coming as Afreximbank details plan to sponsor more projects

• A total of $18 billion was committed to various projects around Africa by the African Export-Import Bank (Afreximbank) in 2023
• The world's largest single-train oil refinery built by Dangote is one of the massive projects that Afreximbank has supported
• In addition, the bank has funded one of the biggest urea fertiliser facilities in the world, which produces 3 million tons of fertiliser annually

Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.

With a strategic objective of assisting in refining half of Africa's daily production of 5 million barrels of crude oil, the African Export-Import Bank (Afreximbank) 2023 committed a total of $18 billion to various projects around Africa.

Benedict Oramah, Afreximbank's president, characterised 2023 as remarkable for the bank and its activities across Africa. Photo Credit: Natnan Srisuwan
Source: Getty Images

Afreximbank's president, Benedict Oramah, characterised the previous year as remarkable for the bank and its activities across Africa.

According to a BusinessDay report, the bank boosted its payouts by 8.7%, from $16.6 billion to $18 billion, despite persistent macroeconomic difficulties.

At the ongoing 2024 Afreximbank annual meetings, which include the Africaribbean trade and investment forum, in Nassau, The Bahamas, Oramah announced that at the end of 2023, the bank's entire assets and guarantees had increased to $37.2 billion.

He said:

“Alongside asset growth, we also delivered increased value for our shareholders. Total revenues of the Afreximbank Group surged by 74.2% to $2.6 billion, with profits rising by 66 percent to $756 million.”

He also emphasised the contributions made by group organisations such as Afrexim Shore and the Fund for Export Development in Africa, which started to raise the bank's earnings significantly.

“Our goal is to support the creation of a refining capacity that will ensure that at least 50% of about 5 million barrels per day of crude oil produced in the Gulf of Guinea is refined in Africa."

Afreximbank supported transformative projects

Oramah highlighted the bank's significant achievements and impact in 2023. Beyond impressive financial figures, Oramah emphasised the transformative projects and lives positively affected by the bank's initiatives.

He said:

“We are thrilled by the many lives touched and the positive changes brought about by our efforts this year. Among these, I must highlight our crucial support that enabled the Dangote Refinery and Petrochemical Company to commence operations. This additional facility has brought our total direct and indirect support for the complex over the years to $2.6 billion.”

More projects are on the way

The bank also supported one of the biggest urea fertiliser facilities in the world, which produces 3 million tons of fertiliser annually with plans to increase to 6 million tons, and a petrochemical factory that produces approximately one million tons of polypropylene annually.

The Dangote project received support as part of a larger plan that also included providing $1.3 billion to renovate the Port Harcourt refinery in Nigeria and construct a new refinery in Cabinda, Angola.

Oramah reiterated the bank's goal:

“Our aim is to create refining capacity that ensures at least 50 percent of the approximately 5 million barrels per day of crude oil produced in the Gulf of Guinea is refined in Africa.”

Dangote plans to go into steel production

Legit.ng reported that Aliko Dangote, a leading entrepreneur and richest man in Africa, is preparing to start his next big project: a steel manufacturing company.

Dangote revealed his new goal on Wednesday, June 12, in Nassau, The Bahamas, during the Afreximbank Annual Meetings (AAN) and Afri-Caribbean Trade & Investment Forum.

Dangote's new steel company is expected to boost Nigeria's steel production capacity significantly, reducing the country's reliance on imports.

Source: Legit.ng