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Financial close of Cabinda Oil Refinery investment a boost for Angola

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According to Gemcorp CEO Atanas Bostandjiev the Cabinda Refinery will make Angola energy independent while leveraging its natural resources for the benefit of the community and the wider economy. Image credit: Gemcorp

Financial close of Cabinda Oil Refinery investment a boost for Angola

Gemcorp Holdings Limited (GHL), Africa Finance Corporation (AFC) and African Export-Import Bank (Afreximbank) yesterday announcde the financial close of the Cabinda Oil Refinery investment in Angola.

The USD473-million project is financed through USD138-million of equity already provided by the project sponsors and USD335-million project financing facility led by AFC, Afreximbank and a consortium of international and local financial institutions. The project is being developed by GHL in partnership with Angola’s state oil company, Sonangol.

According to Gemcorp CEO Atanas Bostandjiev the project stands to make Angola energy independent while leveraging its natural resources for the benefit of the community and the wider economy.

“We have benefitted immensely from the local expertise made possible by working closely with the Sonangol team and our partners, Africa Finance Corporation and Afreximbank, who share our vision to deliver this monumental life-changing infrastructure,” says Bostandjiev.

Credit facility paves the way for construction (Financial close of Cabinda Oil Refinery investment a boost for Angola)

The credit facility covers the first phase of the project and paves the way for construction, which will enable the processing of 30,000 crude oil barrels a day. In due course, the second phase will add another 30,000, bringing the refinery’s refining capacity to 60,000 barrels a day on completion.

Upon completion of the first phase, the refinery is envisioned to deliver close to 10% of the country’s total demand for refined oil products, increasing to about 20% upon completion of phase 2, while creating over 1300 direct and indirect jobs in the process.

To date, there have been 300,000 man-hours of training completed for the upskilling of local employees, with 1,000,000 man-hours worked on the project, all completed injury free.

Other lenders also contributing to the project financing facility include The Industrial Development Corporation (IDC) of South Africa, The Arab Bank for the Economic Development in Africa (BADEA) and Banco de Fomento Angola (BFA).

Critical role in energy security (Financial close of Cabinda Oil Refinery investment a boost for Angola)

“This investment is playing a critical role in Angola’s energy security and delivering local employment opportunities while furthering the nation’s technological capabilities. It will also reduce the country’s reliance on imports to meet its current energy needs,” says Bostandjiev.

Africa Finance Corporation President and CEO, Samaila Zubairu says that the project will enable Angola to reducing carbon emissions by eliminating two wasteful voyages involved in exporting crude oil as raw materials and importing it back as refined product.

“Cabinda Refinery will generate significant employment opportunities which will help to build the skilled workforce of the future.

“It will save valuable foreign exchange and enhance Angola’s balance of payments. It will create spin-off industries that rely on the output of the refinery thereby boosting the economy and driving long-term economic growth. We look forward to collaborating with stakeholders to continue driving forward the sustainable development of our continent,” says Zubairu.

According to Professor Benedict Oramah, President, and Chairman of the Board of Directors of Afreximbank the establishment of a modular oil refinery in Cabinda will add critical value to Angola’s main commodity and its largest export product.

“Furthermore, it will not be necessary to transport crude and refined products to and from Africa. Afreximbank remains committed to playing a vital role in stimulating economic growth on the continent. We look forward to boosting intra-African trade through the supply of refined products from Angola to near markets,” says Oramah.

Source: Afreximbank

WhyAfrica will visit parts of Angola during our annual WhyAfrica Road trip that starts next week.

This year our annual WhyAfrica Road Trip, sponsored by Remote Exploration Services (RES), will take us through regions in Southern and Central Africa that have become key points of interest as global superpowers try to make sense of a rapidly changing world. 

During the first leg of our 2023 WhyAfrica Road trip we will travel through the Caprivi Strip in Namibia, western Zambia, the Moxico province of Angola, the Copperbelt in Zambia, south-eastern Zambia, Malawi, Botswana and South Africa. We expect to visit close to 20 project sites.

Companies and individuals still have time to jump on board and become bronze sponsors of the WhyAfrica Road Trip or partner with WhyAfrica for the rest of 2023. We will only close our sponsorship opportunities this Friday, so if you’re interested give us a call. Also remember that as a WhyAfrica member you’ll get regular updates during the trip and a full and in-depth report about opportunities, challenges and on the ground business intelligence after the trip. Click here to become a member  https://www.whyafrica.co.za/product/membership/

If you’re not a WhyAfrica member yet, you can still follow our progress during the trip on our online platform (www.whyafrica.co.za), and on Linkedin, Twitter, Facebook, Instagram and YouTube. Subscribe to WhyAfrica’s YouTube channel and get glimpses of our adventure as we make our way through Namibia, Zambia, Angola, Malawi, Botswana and South Africa. 

Our photos and videos on Instagram and on our YouTube channel are unfiltered and unedited. We DO NOT use ChatGPT or photoshop to spice up our visual content and we’re not into selfies either.  We might be old school, but this is the real deal. We like to get our boots, camera lenses and notebooks dirty. What we see is what you get, what we hear is what you hear and what you read is what we feel, smell, and think. Thus, to get the full package and to use all your senses, follow WhyAfrica through Africa. When it comes to natural resources in Africa, we cover all angles.   

Financial close of Cabinda Oil Refinery investment a boost for Angola


WhyAfrica provides on the ground information and business intelligence about the sustainable utilisation and extraction of natural resources in Africa, and can assist your company through:  

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Financial close of Cabinda Oil Refinery investment a boost for Angola




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