The African Export-Import Bank (Afreximbank) has extended a US$100mn revolving trade finance facility to oil trader JE Energy to finance its purchase and sale of crude oil from Guyana’s Ministry of Natural Resources for export to international markets.

The two-year facility will help JE Energy to fulfil a contract with the Guyanese government it first secured last year and renewed in October.

The agreement allows JE Energy to market the government’s oil at a premium of US$1.85 per barrel. Afreximbank says the oil will be sold to “reputable international offtakers”.

“Afreximbank is thrilled to support JE Energy in their recent contract with the Republic of Guyana to facilitate the export of the country’s crude oil,” says Gwen Mwaba, the bank’s managing director of trade finance and correspondent banking.

“This partnership not only highlights our commitment to fostering sustainable energy solutions in Africa and beyond but also strengthens regional trade ties. We believe that supporting innovative companies like JE Energy is crucial for unlocking economic potential and driving growth in the energy sector.”

The facility is part of Afreximbank’s efforts to increase its business in Caribbean Community (Caricom) member countries.

Caricom is an alliance of 15 member states in the Caribbean focused on economic growth and regional integration.

Afreximbank announced its intention to open a Caribbean import-export bank in 2022.

In June, Afreximbank and the Caribbean Export Development Agency signed a memorandum of understanding to “provide a platform for exploring joint activities to support trade and investment flows between Africa and the Caribbean”, Afreximbank said at the time.

According to its terms, the two bodies will collaborate in building capacity, information exchange and investment promotion.

Guyana’s oil industry, which began production in 2019, has grown rapidly reaching 645,000 barrels of crude a day in early 2024.

The discovery of the Stabroek Block offshore oil reserves has transformed the country’s economy, which experienced 33% growth in 2023 It has also led to increased tensions with neighbouring Venezuela, which claims large portions of the exclusive economic zone in which they are located.