Fund for Export Development in Africa invests in Angola oil refinery
The Fund for Export Development in Africa (FEDA), an Afreximbank subsidiary, has announced an investment into Cabinda Oil Refinery, an integrated modular oil refining platform in Angola being developed by Gemcorp in joint venture with Sonangol.
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.
FEDA’s investment comes shortly after Gemcorp, Afreximbank and Africa Finance Corporation successfully led the debt raising of a $335 million project financing facility in July 2023.
Atanas Bostandjiev, CEO of Gemcorp commented, “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 commented, “Our investment in Cabinda Oil Refinery demonstrates FEDA’s commitment to drive industrialisation 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 industrialisation and value-added export development.”
* Subscribe to Africa Private Equity News’ monthly Dealmaker’s Log for a database of the reported investment deals, exits and fundraising closes. Click here for more information.