Cape town: Africa faces a significant strategic risk due to its heavy reliance on imported fuel, the African Refiners and Distributors Association (ARDA) has highlighted. A 30-day halt in petroleum product imports could potentially cripple the continent's economies, impacting sectors from aviation and transport to healthcare and essential services.
According to Ghana News Agency, despite Africa producing over five million barrels of crude oil daily, more than 70 percent of its refined petroleum products are imported. This dependence exposes the continent to global supply shocks with immediate consequences. Mr. Anibor Kragha, Executive Secretary of ARDA, emphasized the systemic impact a halt in imports would have during an interview at the ARDA Week 2025 conference in Cape Town.
The association warned that a disruption in fuel imports would severely affect multiple sectors. Aviation would be grounded, and goods, medicines, and food could be stranded. Critical services relying on diesel-powered generators, such as hospitals and telecom towers, would be compromised, leading to potential health service disruptions and urban water supply issues. Mining operations across several countries could halt, affecting exports and resulting in significant revenue losses.
Africa's refining capacity does not meet its domestic demand. With over 40 refineries, many are outdated or underutilized. Nigeria, despite being a major crude oil producer, imports more than half of its fuel. Efforts to increase refining capacity, such as in Congo, remain insufficient to meet growing energy demands driven by a rising population.
ARDA has proposed a strategy under the theme 'Africa First' to enhance energy security. This includes upgrading refining capacity, harmonizing fuel regulations, and developing infrastructure to support intra-African trade. The association also emphasizes expanding access to clean LPG and leveraging local investment sources to fund energy projects.
The association calls for streamlined project approvals and addressing infrastructure challenges. It advocates for creating strategic fuel reserves and mobilizing domestic capital to strengthen energy security. Mr. Kragha stressed the importance of energy sovereignty for sustainable development and called for strong political will and a unified approach to reduce dependence on imports and enhance resilience.
