Cabinda Oil Refinery Project in Angola sees green light with $473m in financing

The Cabinda Oil Refinery project in Angola has reached its financial close, thanks to Gemcorp Holdings Limited (GHL), Africa Finance Corporation (AFC), and African Export-Import Bank (Afreximbank).

This project, valued at $473 million, includes US$138 million of equity provided by the project sponsors and a $335 million project financing facility led by Africa Finance Corporation, Afrexim, and a consortium of international and local financial institutions.

The project is being developed by Gemcorp Holdings Limited in partnership with Angola’s state oil company, Sonangol, with Gemcorp Holdings Limited acting as the majority shareholder. The credit facility covers the project’s first phase, which includes the construction of a facility capable of processing 30,000 barrels of crude oil daily. The second phase of the project is set to double this processing capacity to 60,000 barrels per day.

Upon the completion of the first phase, the refinery is expected to meet approximately 10% of Angola’s total demand for refined oil products, which would increase to around 20% following the completion of phase 2. The oil refinery project is also projected to create over 1,300 direct and indirect jobs, contributing significantly to the local economy.

Several lenders, including The Industrial Development Corporation (IDC) of South Africa, The Arab Bank for the Economic Development in Africa (BADEA), and Banco de Fomento Angola (BFA), have contributed to the project financing facility.

The investment in the Cabinda Oil Refinery is critical to Angola’s energy security. It will deliver local employment opportunities, advance the nation’s technological capabilities, and reduce the country’s reliance on energy imports.

In the words of Gemcorp Holdings Limited Chief Executive Officer, 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.” AFC President & CEO, Samaila Zubairu, also highlighted the project’s potential, saying it’s in line with their vision to capture and retain value in the Angolan economy while reducing carbon emissions. He added, “It will create spin-off industries that rely on the output of the refinery thereby boosting the economy and driving long-term economic growth.”