Africa is celebrated for its wealth of natural resources, yet their utilization remains a challenge, as many nations struggle to establish refineries capable of supporting end-product production and supply.
Investing in the construction and modernization of refineries across Africa is crucial for reducing reliance on fuel imports and fostering industrial growth
Heavy reliance on imported refined petroleum products costs the continent billions of dollars annually
Africa lacks sufficient refining capabilities for its abundant natural resources
The continent’s lack functional refineries has resulted in a heavy reliance on imported refined petroleum products, costing Africa billions of dollars annually and significantly impacting its economies.
Currently, the combined oil production capacity in the continent stood at 7.2 million barrels of oil per day in 2023., however, the refining capacity of African refineries has not been able to bridge the fuel supply gap in the continent.
Over the years, some countries have taken bold steps to fix their refineries while some individuals have taken the rather audacious steps to build private refineries.
According to Refineries Watch 2024 (Report) published by Hawilti, apart from refined oils, refineries in Africa contribute a whole lot to regional security.
“The strategic importance of refineries in Africa cannot be overstated. These facilities not only process crude oil into essential products like gasoline, diesel, and jet fuel but also contribute significantly to regional energy security and economic development.” the report noted.
This dependency on imports also exposes African economies to the volatility of global oil prices, geopolitical conflicts, and supply chain disruptions, exacerbating economic instability.
The recent commencement of Nigeria’s Port Harcourt refinery, along with government support for establishing modular refineries, underscores Africa’s commitment to reducing its reliance on fuel imports and achieving energy self-sufficiency.
According to the Refinery Watch 2024 report, the table below presents the location of several refineries in Africa and their host nations.
Nigeria Ghana South Africa Angola Sudan
1 PH Tema ENGEN Luanda P. Sudan
2 Warri Platon SAPREF Cabinda Jaili
3 Kaduna Akwaaba CALTEX
4 Ogbede Sentuo NATREF
5 Ibigwe Mossel Bay
6 Edo
7 OPAC
8 Duport
9 Dangote
Several African countries, including Zambia, Senegal, Côte d’Ivoire, Niger, Liberia, and DR Congo, currently operate only one refinery each. Additional nations such as Chad, Gabon, Cameroon, Congo, and Kenya are also part of the continent’s refining landscape.
West Africa stands out as the sub-continent with the largest refining capacity, though only about 30% of it is functional. The Dangote Refinery, with a refining capacity of 650,000 barrels per day (BPD), is expected to be a transformative force in the region.
Refinery closures in Zambia and South Africa are projected to position Angola as the primary refining hub in the region by 2030. South Africa’s Central Energy Fund anticipates the country will need to import approximately 604,000 BPD of petroleum products by 2025.
Investing in the construction and modernization of refineries across Africa would not only reduce reliance on fuel imports but also foster industrial growth, enhance energy security, and lower domestic fuel costs.
Business Insider Africa
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