Afreximbank launches US$1 billion oil services fund to support local businesses in O&G sector

The African Export-Import Bank (Afreximbank) on Wednesday launched a US$1 billion oil services financing facility in Guyana, aimed at supporting local businesses in the oil and gas sector.

The announcement was made at the start of a two-day road show at the Marriott Hotel in Georgetown, held in collaboration with the Government of Guyana. The event, themed “Empowering Local Content Participation for Sustainable Prosperity through the Implementation of Afreximbank Mandate”, brings together local business and government officials.

The initiative follows bilateral talks earlier this year between Guyanese President Irfaan Ali and Afreximbank President Benedict O. Oramah. Oramah had announced the bank’s intention to launch the facility during Guyana’s Energy Conference and Supply Chain Expo in February.

Speaking at the event, Senior Minister in the Office of the President with Responsibility for Finance and the Public Service Dr. Ashni Singh highlighted the historic and economic ties between Africa and the Caribbean.

“There is a really deep and profound tie between the African continent and the Caribbean, that is rooted primarily first and foremost, in its people and culture. But there are also remarkable economic opportunities that have remained untapped and under tapped for far too long, and we need, in this generation to move the relationship beyond historic, cultural and emotional times, and instead, capitalise and leverage resources to realise the vast economic and commercial opportunities that exist between our economies,” he said.

Singh thanked Afreximbank for establishing the facility and urged local businesses to explore the financial products being introduced.

“We are committed as a government to providing all of the support that we possibly can to facilitate and encourage easier and more competitively priced access to financing,” he added.

Afreximbank’s Regional Chief Operating Officer, Okechukwu Ihejirika, said the launch marked a move from intention to action.

“It is something we mean to implement… about getting deals done. We’re here to listen, to engage, and to start implementation,” he said.

Ihejirika also stressed the importance of local participation in Guyana’s oil economy. “It is imperative that not just international oil firms, but local businesses also benefit from Guyana’s oil wealth,” he said.

Founded in 1993, Afreximbank is an international financial institution with a mandate to expand and diversify African trade while operating as a profit-oriented, socially responsible bank and a centre of excellence in trade matters.