Afreximbank Signs $100M Trade Finance Deal with JE Energy to Boost Crude Oil Trade in Guyana

Under the terms of the two-year agreement, JE Energy Limited will use the financing to facilitate the purchase and sale of crude oil sourced from Guyana’s Ministry of Natural Resources.

The African Export-Import Bank (Afreximbank) has entered into a landmark agreement with oil trader JE Energy Limited, providing a $100-million Revolving Trade Finance Facility to bolster crude oil trade operations in Guyana. The signing occurred on November 5, 2024, during the African Energy Week in Cape Town, South Africa. Key Objectives of the Facility

Under the terms of the two-year agreement, JE Energy Limited will use the financing to facilitate the purchase and sale of crude oil sourced from Guyana’s Ministry of Natural Resources. The oil will be marketed to reputable international buyers, ensuring Guyana benefits from its burgeoning natural resource sector while securing valuable foreign currency revenue.

This initiative is aligned with Afreximbank's broader strategy to create economic opportunities within its member countries, including those in the CARICOM region.

Strategic Significance

Guyana, a relatively new entrant to the global oil market, has become a vital player in crude oil production since commencing operations in 2019. By early 2024, Guyana's production reached an impressive 645,000 barrels per day, making oil the largest contributor to its economic growth.

“This facility represents an essential step in ensuring Guyana's crude oil is efficiently traded on international markets, driving economic development and increasing regional cooperation,” remarked Ms. Gwen Mwaba, Managing Director of Trade Finance & Correspondent Banking at Afreximbank.

Key Statements

Helen Brume, Director & Global Head of Project & Asset-Based Finance at Afreximbank, signed the agreement on behalf of the bank, while Joseph Ilebode, Group Managing Director of JE Energy Limited, represented the oil trading company.

Speaking on the occasion, Joseph Ilebode expressed gratitude, saying, “This partnership with Afreximbank underscores their commitment to fostering energy solutions. This facility will enhance JE Energy's plans, not just in Guyana but across Africa.”

Gwen Mwaba emphasized Afreximbank’s commitment to sustainable energy solutions, adding, “We believe that partnerships like this are key to unlocking economic potential in the energy sector and fostering a prosperous future for Guyana and the region.”

African Energy Week: A Platform for Strategic Partnerships

The announcement came during the African Energy Week, a premier event hosted by the African Energy Chamber from November 4–8, 2024, in Cape Town. The event brought together energy leaders, investors, and executives to discuss the future of the African energy landscape. Highlights included:

Panel discussions and industry summits addressing challenges and opportunities in the energy sector.

Networking opportunities and investor forums promoting cross-continental collaborations.

Broader Implications for Africa

While the deal centers on Guyana, it underscores the growing importance of African institutions in global energy trade. Afreximbank’s support for JE Energy is part of its vision to facilitate innovative projects that expand trade corridors and enable sustainable growth across Africa and beyond.

This agreement is not just about financing crude oil trade; it represents a strategic push towards fostering South-South cooperation, unlocking economic potential, and driving inclusive growth in the energy sector.