THE Fund for Export Development in Africa (FEDA), the impact investment subsidiary of Afreximbank, has made a significant announcement regarding its latest investment in Cabinda Oil Refinery, an integrated modular oil refining platform located in Angola. This project is being developed in a joint venture with Gemcorp Holdings and Sonangol, marking a pivotal step in promoting sustainable industrialization and economic development in the region.
Cabinda Oil Refinery is set to become a 60,000 barrel per day (bpd) high conversion refinery, with an initial phase of 30,000 bpd. Situated in the Cabinda Province of Angola, a key African crude oil producer, the refinery is strategically designed to process Angola’s crude oil into various petroleum products, including diesel, gasoline, naphtha, and jet fuel. These products will cater to both local and international markets. Notably, this project is expected to double Angola’s refining capacity, offering the nation and the wider region an opportunity to gradually reduce their reliance on imported refined petroleum products.
This investment by FEDA reaffirms its unwavering commitment to supporting Africa’s industrialisation and economic growth while prioritizing environmental sustainability. One of the primary objectives of the Cabinda Oil Refinery is to facilitate Angola’s transition to cleaner, high-value refined products that can meet up to 20 percent of the domestic demand. This shift will also contribute to emissions reduction by reducing the need for transporting locally produced crude oil for export and importing refined products.
FEDA’s investment follows closely on the heels of a successful debt-raising effort led by Gemcorp, Afreximbank, and Africa Finance Corporation, which secured a $335 million project financing facility in July 2023. With FEDA’s additional investment, the Afreximbank Group underscores its unique capacity to invest across the capital structure, thereby delivering unparalleled support for the development of vital infrastructure projects across the continent.
Atanas Bostandjiev, CEO of Gemcorp Holdings, expressed enthusiasm about the Cabinda Oil Refinery project, highlighting its potential to transform Angola’s energy landscape. He stated, ‘Gemcorp is delighted to be playing a key role in the construction of the Cabinda Oil Refinery in partnership with Sonangol, Afreximbank, Africa Finance Corporation, and FEDA. Angola is an oil-rich country on a mission to leverage its resources for the socioeconomic benefit of its people. Once completed, the refinery will go a long way in unlocking the nation’s economic potential as it becomes more self-reliant for its energy needs. Gemcorp’s investment in the project will play a significant part in realising this ambition.’
Marlène Ngoyi, CEO of FEDA, emphasised the significance of their investment in Cabinda Oil Refinery. She noted that the project aligns with FEDA’s commitment to drive industrialization and import substitution across Africa. In addition to meeting Angola’s refined petroleum needs and creating export opportunities, the refinery will contribute to reducing greenhouse gas emissions by minimizing the transportation of crude and refined products to and from Africa. This investment underscores FEDA’s mandate to provide capital with a focus on delivering developmental impact in various sectors that are critical for driving industrialisation and value-added export development across the continent.