The Fund for Export Development in Africa (FEDA), Afreximbank’s impact investment subsidiary, has invested in Cabinda Oil Refinery, an integrated modular oil refining platform in Angola being developed by Gemcorp in Joint Venture with Sonangol.

Marlène Ngoyi, CEO of FEDA, said: “Our investment in Cabinda Oil Refinery demonstrates FEDA’s commitment to drive industrialization and import substitution on the continent.” 

“The Project is central to Angola’s plans to drive further local value addition of its crude resources, allowing the country to meet its refined petroleum needs as well as creating export opportunities. The Refinery further contributes to a reduction in greenhouse gases by reducing the need to transport crude and refined products to and from Africa. The investment speaks to FEDA’s mandate of providing capital with a focus on delivering development impact in diverse sectors in Africa which are critical to driving industrialization and value-added export development.”

Cabinda Oil Refinery is a 60,000 barrel per day (bpd) high conversion refinery, with a first phase of 30,000 bpd, in the Cabinda Province of Angola, one of Africa’s largest crude oil producers. 

The Refinery is targeted at processing Angola’s crude oil into a variety of petroleum products including diesel, gasoline, naphtha, and jet fuel for both local and export consumption. 

Upon completion, Cabinda Oil Refinery will double Angola’s refining capacity, enabling the country and the wider region to gradually reduce their reliance on the importation of refined petroleum products.

With this investment, FEDA confirms its commitment to support Africa’s industrialization and economic development, while ensuring environmental sustainability. 

The transaction will support Angola’s energy transition by enabling the production of cleaner, high value refined products to cater for up to 20% of the domestic demand, as well reducing emissions by decreasing the need of transportation for both the exportation of locally produced crude oil and the importation of refined products.  

FEDA’s investment comes shortly after Gemcorp, Afreximbank and Africa Finance Corporation successfully led the debt raising of a $335m project financing facility in July 2023. 

With this additional investment from FEDA, the Afreximbank Group demonstrates its unique ability to invest across the capital structure and therefore provide unparalleled support to the development of critical infrastructure across the continent.

Atanas Bostandjiev, CEO of Gemcorp Holdings, said: “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.”