Atmin, a new Dubai-based trading house aims to reduce Africa’s fuel import dependency and boost intra-continental trade.
Strategic Shift: Atmin’s Emergence in African Energy Trading
In a significant development for Africa’s energy sector, former Shell oil traders have established a new trading house, Atmin, with a focus on African oil trading. Backed by the African Export-Import Bank (Afreximbank), this move comes as Western oil majors and banks retreat from the continent, leaving a gap in energy trade and investment. Africa currently spends approximately $30 billion annually on fuel imports, highlighting the need for localized trading solutions.
Leadership and Operational Blueprint
Atmin, short for Africa Trading Minerals, is headquartered in Dubai and will be led by Ajay Oommen, who brings 17 years of experience from Shell, including his role as head of the low sulphur crude desk. The team also includes Vikram Thakur and Joseph Kanaan, with 18 and 11 years at Shell respectively, bringing expertise in business development, trading origination, and structured finance. The firm will commence operations with crude oil trading and plans to expand into oil products and minerals.
Afreximbank’s Strategic Investment
Afreximbank will be the controlling shareholder of Atmin, with employees owning approximately 15% of the firm. This investment aligns with Afreximbank’s broader strategy to enhance intra-African trade and reduce dependency on external fuel sources. The bank has also launched a $3 billion revolving trade financing program to support fuel purchases by African and Caribbean buyers, aiming to bolster regional refining capacities and trade.
In a statement on Monday, Afreximbank said, “Afreximbank-affiliated trading entity Atmin will … participate actively in the trading and financing activities of the leading African oil trading companies with long-term relationship with Afreximbank.”
Addressing Africa’s Energy Challenges
The establishment of Atmin addresses critical challenges in Africa’s energy sector, including under-investment and the risk of stranded oil and gas reserves amid the global energy transition. By focusing on localized trading and leveraging regional financial support, Atmin aims to enhance energy security and economic resilience across the continent.
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