Africa’s energy trading landscape has shifted, as one of the continent’s biggest and longest-running independent energy suppliers, Oryx Energies SA (OESA), the holding company of Addax Energy SA, is now majority African-owned for the first time, following a US$975 million financing facility from the African Export-Import Bank (Afreximbank).
The facility, which has been disbursed, part-funds a management buy-out of the company. Afreximbank acted as sole lender, facility agent, security trustee and escrow agent for the deal.
The transaction is seen as a boost for Africa’s energy security and shows that African financial institutions can fund the continent’s industrial growth with African capital.
The acquisition gives Africa a chance to keep more economic value at home, move toward energy sovereignty and align its resources with its development agenda.
The financing builds on Afreximbank’s wider support for the energy sector, including investments in upstream production and refining capacity.
It also reflects the Bank’s commitment to providing suitably structured financing that helps African businesses strengthen operations, develop energy infrastructure and expand trade across the continent.
Moussa Diao, CEO of Oryx Energies SA, described the buy-out as an important milestone for the company and a continuation of a journey his management team has been part of for many years.
“It also reflects the strength of experienced African leadership and its ability to guide established businesses towards new opportunities. It provides an opportunity to build on the strong foundations of the business, drawing on our longstanding experience and deep understanding of African energy markets. Our ambition remains to strengthen our activities in energy trading and infrastructure development across Africa,” he said.
Mr. Diao added that the deal would not have been possible without Afreximbank’s confidence and support.
He said the Bank’s involvement shows faith in the management team and the business, as well as in the opportunities Africa continues to offer, and underlines the growing role of African financial institutions in backing established African businesses.
Dr. George Elombi, President and Chairman of the Board of Directors of Afreximbank, said the transaction advances the Bank’s mandate to drive the structural transformation of African economies.
“Through the Management Buy-Out of Oryx Energies SA’s trading and distribution business, we have secured a strategic platform to deepen Africa’s energy industrial ecosystem, strengthen energy infrastructure and capture more value from the continent’s abundant natural resources.
“It will also promote greater African ownership and participation in development by empowering local entrepreneurs, expanding local value creation, building capacity, creating jobs and retaining more economic value on the continent,” he said.
