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Africa incurs an estimated $30 billion loss annually in petroleum import costs
“Together, we can create an Africa that is not just resource-rich but energy-secure, an Africa where every season has access to affordable, reliable and an Africa that contributes actively to the global economy.”
So said the Afreximbank Chairman and CEO Benedict Oramah at an energy conference in Cape Town yesterday (6 November)..
Oramah reaffirmed the continent’s export-import bank’s commitment to a sustainable and inclusive energy future for Africa.
He emphasised the need for a resilient future for the energy ecosystem, “a future that meets the needs of our people, protects the environment and drives economic growth.”
Omarah stated that while Africa holds nearly 10% of the world’s oil reserves, boasting over 40% of global solar potential, lack of electricity across the continent remains a challenge.
“This is the paradox of plenty—poverty in the midst of abundance. The World Bank estimates that inadequate access to reliable energy reduces Africa’s annual GDP by 2-4%, a formidable barrier to the continent’s growth.
“The need to address this has never been more urgent,” he said.
He emphasised the importance of leveraging the full extent of the value chain of the oil and gas available to the continent.
Africa produces millions of barrels yet incurs loss due to inadequate refining capacity
He added that Africa produces around 7 million barrels of oil per day, yet it incurs an estimated 30 billion loss annually in petroleum import costs due to inadequate refining capacity on the continent.
African oil producers have helped sustain the anomaly whereby non-oil producers in Asia and Europe have become major global refining hubs where we ship our crude oil to be refined and sold back to us as petroleum products,” said Omarah, delivering the keynote address at Africa Energy Week in Cape Town.
He noted that African countires are not doing what other major crude oil-producing countries do by refining between 30% and over 100% of their crude oil and said this must change. He added that Afreximbank has committed considerable resources to that effect.
“In Nigeria, we are supporting the emergence of over 1 million barrels per day of refining capacity at an aggregate investment of about $4 billion.
“In Angola, we have supported and are supporting the emergence of just under 300,000 barrels per day combined refining capacity at Cabinda and Lobito at an estimated cost of over $5,3 billion,” he said.
Omarah urged African and Caribbean oil producers to consider entering into deals with African refineries in a manner that will be mutually beneficial. |
