Oando joins Afreximbank’s AfrexInsure portfolio

AfrexInsure has announced the onboarding of Oando PLC as one of its strategic clients, further strengthening the business relationship between the two organisations.

AfrexInsure is the wholly owned specialty insurance subsidiary of the African Export-Import Bank (Afreximbank), providing comprehensive and tailored solutions to secure assets.

The firm stated that with Oando joining its client portfolio, this new development aligns with Afreximbank’s financial support to the company, with critical risk management solutions to ensure that the Bank’s investment in Oando PLC’s operations in Nigeria is safeguarded through tailored specialty insurance solutions.

It noted that by mitigating operational and geopolitical risks, the collaboration would enhance Oando’s resilience, promote sustainable energy development, and reinforce Afreximbank’s commitment to economic growth and regional stability within the trade ecosystem.

Commenting on the partnership, Jonas Mushosho, CEO and Principal Officer of AfrexInsure, said: “This strategic collaboration between Oando and AfrexInsure will help promote local content in Africa’s oil and gas sector.

“This partnership underscores a shared commitment to fostering economic empowerment and contributing to the sustainable development of Africa’s natural resources. It will also strengthen the African insurance sector by retaining premium flows within the continent and fostering Africa’s financial sustainability.”

Mr Mushosho, who noted that Oando PLC and Afreximbank had established a significant business relationship aimed at enhancing trade development in Africa’s energy sector, added that many multinationals doing business in Africa face high levels of risk in the current volatile and uncertain environment.

He explained that greater availability of affordable trade-related specialty insurance solutions could mitigate these risks and encourage firms to engage in enhanced industrialisation and export development activities.

“This achievement by AfrexInsure demonstrates how we are supporting the growth of trade and development in Africa by providing essential insurance management services. This gives investors the confidence to make investments in Africa. By using African securities, specialty insurance premiums raised in Africa are retained on the continent and are used to contribute to its overall trade and economic development,” Mr Mushosho said.

Commenting on this announcement, Wale Tinubu, Group Chief Executive of Oando PLC, said: “We have a longstanding relationship with Afreximbank, which has supported our vision for energy in Africa not only with essential financing but also with invaluable guidance and advisory support. Following our recent acquisition, a tailored risk identification and mitigation approach is paramount.

“We are confident that our collaboration with AfrexInsure will provide the necessary oversight to ensure both the adequacy and comprehensiveness of our risk management strategy.”

Afreximbank’s partnership with Oando has included a pivotal role in financing the company’s strategic initiatives in Nigeria’s oil and gas sector, including:

• Facilitating a US$650-million financing for Oando PLC’s acquisition of Nigerian Agip Oil Company assets in August 2024, which is expected to enhance Oando’s production capacity from 20,000 to 100,000 barrels of oil equivalent per day, boosting Nigeria’s oil output and economic growth; and

• Oando PLC’s participation, through its Oando Trading subsidiary (“Oando Trading”), in Project Gazelle, the US$3.3-billion structured crude oil-backed finance facility sponsored by the Nigerian National Petroleum Company Limited in June 2024, in which Oando Trading contributed US$550 million to a US$925-million accordion facility arranged by Afreximbank.

Established by Afreximbank, AfrexInsure provides specialty insurance products to ensure that right-fit insurance solutions are secured for African clients.

The subsidiary provides comprehensive and tailored solutions to secure clients’ assets and meet the bankability requirements of project funders.

It draws on expertise, a personalised approach, and market knowledge to guarantee that Intra-African Trade Champions and multinationals receive value from programmes backed by top-rated insurers capable of paying claims.

By placing its programme with pan-African (re)insurers and strong local underwriters, AfrexInsure achieves the retention of premiums within Africa, making it possible for such funds to be invested on the continent, where African businesses can access them at lower cost.

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