Afreximbank: A Catalyst for Change in Africa’s Energy Sector
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In a noteworthy development, Prof. Benedict Oramah, President and Chairman of the Board at Afreximbank, recently shared significant strides the organization has made during the closing session of its 32nd Annual Meetings. His insights offered a profound glimpse into how targeted financial interventions can reshape an entire continent’s energy landscape.
Oramah introduced the concept of what he refers to as “African Best Practice,” an approach allowing Afreximbank to step in when other financial entities hesitated. “That was why, when others could not, we were able to directly and indirectly support the Dangote Refinery and Petrochemical Industry with over $4 billion,” he remarked, a statement underscoring both confidence and commitment.
The Dangote Refinery, now operational, marks a pivotal achievement. It plays an instrumental role in helping Nigeria curtail its dependence on imported petroleum, an annual cost estimated to be between $10 to $12 billion. This not only fosters an environment for increased value-added exports but also lays the groundwork for a robust industrial foundation. You can almost envision how this shift can transform local economies, generate jobs, and foster entrepreneurship.
Prof. Oramah didn’t stop at discussing Nigeria’s advancements. He characterized Afreximbank’s overarching contributions to the continent, revealing that the bank has injected approximately $120 billion into various sectors across Africa and the Caribbean from 2020 to May 2025. This expansive focus hints at the intricate web of support being woven throughout the continent, tailored to uplift communities.
Delving deeper, he noted that $50 billion of this funding was earmarked specifically between 2022 and 2023 to bolster internal production capabilities. This strategic move aims to lessen Africa’s dependency on external imports, particularly supplies from the Black Sea. As someone who pays close attention to global markets, I find myself pondering: What happens when a continent takes charge of its own production? The answer may lie in the flourishing economies we will witness in the years to come.
The figures speak volumes. Over the past decade, total investments orchestrated by Afreximbank have reached an impressive $155 billion. To put this into perspective, the bank’s assets and guarantees have surged more than eightfold, hitting a staggering $43.5 billion by April 2025. The leap in revenue—from $408 million in 2015 to an astounding $3.24 billion—demonstrates not just growth but a vision that aligns with both local and continental aspirations.
Oramah attributes this remarkable trajectory to disciplined reinvestment strategies, acknowledging that 50% to 70% of dividends are reinvested annually. The net income has skyrocketed to $1 billion, up significantly from $125 million, while shareholders’ funds have expanded to $7.5 billion. This growth story is fueled by a singular commitment to reinvest in Africa’s future.
The Chairman of the Afreximbank Board, Prof. Benedict Oramah, said the bank has invested approximately $120 billion across Africa and the Caribbean between 2020 and May 2025.
Moreover, Mr. Wale Edun, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, emphasized how vital Afreximbank’s financial support has been for Nigeria. He pointed out that not only has the Dangote Refinery benefited immensely, but numerous small and medium-sized enterprises have also found strength in the financial backing received under Oramah’s leadership. This raises an important question: How might these ventures contribute to Nigeria’s long-term economic resilience?
Nigeria’s Share in Afreximbank’s Energy Commitments
As of 2024, Nigeria accounted for approximately 60% of Afreximbank’s $30 billion funding for Africa’s energy sector. Additionally, in April 2025, the bank committed $3 billion specifically to support intra-African trade in refined oil products. This move represents a collective effort to mitigate the continent’s reliance on imported fuels. However, despite these positive strides, experts caution that Nigeria’s full advantage hinges on increasing crude oil production and refining capacity.
While the Dangote Refinery stands as a monumental advancement, the road ahead requires sustained enhancements across the country’s energy landscape. The interwoven narratives of progress and caution remind us that while we celebrate achievements, the journey towards a truly self-sufficient energy sector is still unfolding.
In conclusion, the recent announcements from Afreximbank encapsulate a vision that embraces not just economic growth, but a shared destiny. What might the future hold as more countries choose to invest in their own capabilities? One thing is for certain: Africa’s narrative of resilience and innovation is just beginning to be written.
