Afreximbank’s $200m bet on Nigerian firm powers Africa’s energy ambitions

As African countries intensify efforts to retain more value from their natural resources and build indigenous industrial capacity, the African Export-Import Bank (Afreximbank) has placed a major bet on Nigerian engineering expertise with a $200 million financing package for Shoreline Power Company Limited.

 

The funding will enable the company to play a leading role in a $980 million oil field expansion project in Algeria, underscoring the growing ability of African firms to execute complex energy infrastructure projects traditionally dominated by international contractors.

 

The financing, approved in June 2026, will support Shoreline Group, through its majority-owned Italian engineering subsidiary, Arkad S.p.A., in executing its share of the Hassi Bir Rekaiz (HBR) Field Development Phase 2a project in Algeria. The deal represents a significant milestone for Nigerian engineering companies expanding beyond domestic borders and aligns with Afreximbank’s strategy of promoting intra-African trade, industrialisation and African-owned infrastructure champions.

 

Arkad holds a 44 percent stake in the engineering, procurement and construction (EPC) contract awarded by Groupement Hassi Bir Rekaiz (GHBR), a consortium comprising Algeria’s Sonatrach, Thailand’s PTTEP and Spain’s CEPSA.

 

The $200 million financing package consists of two facilities. A $110 million contract finance facility will provide performance guarantees, advance payment guarantees and working capital required for the execution of the HBR Phase 2a project.

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The remaining $90 million is a revolving global facility that will support Shoreline Group and its affiliates in bidding for and executing pipeline and infrastructure projects in Nigeria and other approved jurisdictions, strengthening the company’s ability to pursue large-scale projects across Africa.

 

According to Afreximbank, the HBR Phase 2a project involves the construction of a new central processing facility that will increase production from the Hassi Bir Rekaiz field from about 13,000 barrels per day to between 50,000 and 60,000 barrels per day. The expansion is expected to significantly boost Algeria’s crude oil production, enhance export earnings and reinforce the country’s position as a major energy supplier.

 

Beyond increasing production, the project is expected to generate about 6,000 jobs, deepen regional supply chains and facilitate technology transfer while strengthening the capacity of African engineering firms to deliver sophisticated oil and gas infrastructure projects across the continent.

 

Commenting on the transaction, Kanayo Awani, Executive Vice President for Intra-African Trade Finance and Export Development at Afreximbank, described the financing as a landmark achievement under the bank’s Engineering, Procurement and Construction (EPC) Initiative and its Intra-African Trade Champions framework.

 

“This transaction exemplifies our EPC Initiative and our Intra-African Trade Champions framework in action, enabling an African-owned engineering group to compete and deliver at the highest levels of global project execution,” Awani said.

 

She added that the $200 million structured financing would not only support Algeria’s national energy infrastructure development but also advance intra-African trade in high-value engineering and construction services linking Nigeria, Italy and Egypt, demonstrating the increasing competitiveness of African firms in delivering world-class energy infrastructure projects.