Johannesburg, South Africa — A stark warning from the Africa Finance Corporation (AFC) paints a grim picture of Africa’s energy landscape, predicting a substantial 86 million tonne fuel shortfall by 2040. This shortfall, equivalent to nearly three times the output of Nigeria’s Dangote Refinery, underscores the continent’s growing vulnerability to global supply chain disruptions and the urgent necessity for enhanced domestic refining capabilities.
The AFC’s report, issued on Thursday, highlights Africa’s current over-reliance on imported fuel, accounting for over 70% of its refined fuel needs. This dependence is further exacerbated by the reliance on key global shipping routes, notably the Strait of Hormuz, which has become a focal point for disruptions due to the ongoing Iran war. Kenyan President William Ruto’s call for ‘energy sovereignty’and reduction in dependence on external capital is a direct response to this crisis. “.
Our ambitions will remain unrealised if we continue to depend on external capital whose primary interest is securing raw materials for their own industries, “Ruto emphasized.
The AFC’s chief economist, Rita Babihuga-Nsanze, echoed these sentiments, noting that the consequences of this dependence have become undeniable, especially with the shutdown of the Strait of Hormuz.
The AFC’s report also points to the DRC’s recent eurobond issuance, drawing massive demand, and the Middle East crisis testing African economies, as indicative of the broader implications of Africa’s reliance on imported fuel. This reliance not only hinders economic growth but also leaves the continent exposed to global supply chain disruptions.
The Dangote Group’s commitment to building a new 650,000-barrel-per-day refinery in East Africa, contingent on regional government support, is a potential beacon of hope. This initiative is seen as a crucial step towards addressing the fuel shortfall and fostering Africa’s energy independence.
The AFC’s recommendations for the development of new energy hubs and improvements in the performance of existing assets are pivotal in the quest to bridge this fuel shortfall.
As Africa seeks sustainable and diversified energy sources, the continent must act swiftly to secure its energy future and ensure a stable and prosperous path towards economic growth and development.
*Additional reporting by ImNews | Sources consulted: 5*
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This original article was produced by the ImNews editorial team
Source: Africanews
Source: Rédaction Africanews
