The importation of crucial energy products into several West African countries will now be aided with the International Finance Corporation’s $60m investmentin two trade finance facilities arranged by Société Générale for Addax Energy SA.
The first investment of $20m in a $230m facility would help Addax finance imports of refined petroleum products into Benin, Côte d’Ivoire, Senegal, and Sierra Leone, according to IFC in a statement on Thursday.
It said the fund would also help the company distribute the products in Burkina Faso, the Gambia, Guinea, Mali and Niger.
Another investment of $40m in a second facility also arranged by Société Générale for Addax, would finance the entirety of Mauritania’s imports of fuel and transport petroleum in 2021 and 2022, IFC added.
Addax is the trading arm of Oryx Energies SA, one of Africa’s independent providers of oil and gas products and services.
The IFC Regional Director for West and Central Africa, Aliou Maiga, was quoted as saying, “Economic activity relies on a steady supply of energy and IFC’s support for these two trade finance facilities will allow businesses and consumers in West Africa to access fuel when they need it. These investments are also timely as the region begins to recover from the severe economic impacts of the COVID-19 pandemic.”
Responding for Oryx Energies SA, the Chief Financial Officer, Stephen Paris, said, “Our West Africa and Mauritania facilities are pivotal in ensuring a competitive and regular supply of essential energy and fuel products to our traditional and new markets in West Africa.
“Thanks to the strong support of our banking partners, these facilities have prevented any disruption in the energy supply chain due to COVID-19, and supported the resilience of West African economies during challenging times.”
According to IFC, disruptions in global trade finance caused by the pandemic are hampering the efficient and timely delivery of petroleum and other energy products. Hence, increasing access to finance for stakeholders in the energy value chain is, therefore, critical to helping meet the acute energy needs of businesses and consumers in Africa and elsewhere.
