The Fund for Export Development in Africa (FEDA), an impact investment subsidiary of Afreximbank, has invested in the Cabinda Oil Refinery project in Angola. The project, developed in a joint venture with Sonangol, aims to build a 60,000 barrel per day (bpd) high conversion refinery in the Cabinda Province. Once completed, the refinery will double Angola’s refining capacity, reduce reliance on imported refined products, and contribute to the country’s energy transition efforts. FEDA’s investment supports industrialization, value-added export development, and environmental sustainability in Africa.
Key Points:
- FEDA, Afreximbank’s impact investment subsidiary, has invested in the Cabinda Oil Refinery project in Angola, developed in a joint venture with Sonangol.
- The refinery project aims to build a 60,000 bpd high conversion refinery in the Cabinda Province, increasing Angola’s refining capacity and reducing reliance on imported refined products.
- The investment supports Angola’s energy transition by enabling the production of cleaner, high-value refined products and reducing emissions from transportation.
- The project received a $335 million project financing facility led by Gemcorp, Afreximbank, and Africa Finance Corporation in July 2023.
Analysis: FEDA’s investment in the Cabinda Oil Refinery project underscores its commitment to driving industrialization, value-added export development, and environmental sustainability in Africa. The refinery’s capacity expansion will enhance Angola’s self-reliance in meeting its energy needs and reduce the need for imported refined petroleum products. This project aligns with broader efforts to leverage Africa’s resources for socioeconomic development and demonstrates the vital role of impact-focused investments in critical infrastructure projects across the continent.
