The African Export-Import Bank 2023 said it granted a total of $18 billion to various projects across Africa, with the strategic goal of enabling the refining of half of the continent’s 5 million barrels per day of crude oil output.
This was disclosed in a statement by the President of Afreximbank, Benedict Oramah at the ongoing 2024 Afreximbank annual meetings, incorporating the Africaribbean trade and investment forum, in Nassau, Bahamas, according to Businessday.
Oramah described the previous year as outstanding for the bank and its operations in Africa. Despite persistent macroeconomic headwinds, the bank increased its payments by 8.7%, from $16.6 billion last year to $18 billion.
He stated “This brought our total assets and guarantees to $37.2 billion by the end of 2023. Alongside asset growth, we also delivered increased value for our shareholders. Total revenues of the Afreximbank Group surged by 74.2 percent to $2.6 billion, with profits rising by 66 percent to $756 million.”
He emphasized the efforts of group organizations like the Fund for Export Development in Africa and Afrexim Shore, which began to make little contributions to the bank’s earnings and profits.
“Our goal is to support the creation of a refining capacity that will ensure that at least 50 percent of about 5 million barrels per day of crude oil produced in the Gulf of Guinea is refined in Africa,” he said.
Oramah underlined the bank’s considerable achievements and significance in 2023.
Beyond the great financial results, he emphasized the transformative projects and people positively impacted by the bank’s endeavors.
He noted “We are thrilled by the many lives touched and the positive changes brought about by our efforts this year,” Oramah stated. “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.
“We are proud to be associated with these transformational projects, demonstrating the critical role of the capital we control in financing our development,” Oramah added. “It was the African capital that made the difference in delivering these monumental Dangote projects. We congratulate Aliko Dangote for his exemplary courage and entrepreneurial leadership in spearheading this $19 billion project.”
Oramah outlined the massive projects backed by Afreximbank, including Dangote’s largest single-train oil refinery in the world, which can process over 650,000 barrels of crude oil per day. The bank also sponsored one of the largest nitrogen fertilizer facilities, which produces 3 million tons of urea fertilizer per year and is expected to increase to 6 million tons, as well as a petrochemical facility that produces over a million tons of polypropylene per year.
“Looking ahead, Afreximbank aims to collaborate with the CARICOM Secretariat to establish the Caribbean EximBank, aiming to support similar transformational projects in the region. Oramah urged the leaders of CARICOM, stating, “Without your banks like ours, you will not dream of having such projects. Nobody is going to do it for you.
“The support for the Dangote project came as part of a broader strategy, including $1.3 billion in combined support to build a new refinery in Cabinda, Angola, and refurbish the Port Harcourt refinery in Nigeria. 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,” he added.
