bloomshorts Africa’s Costly Dependency on Imported Fuel
Aliko Dangote, President of Dangote Industries Limited, has shed light on a pressing issue facing Africa: the continent’s heavy reliance on imported, often substandard petroleum products. This dependency not only drains $90bn annually from African economies but also exports jobs and imports poverty, according to Dangote.
The Refining Gap
Despite producing seven million barrels of crude oil daily, Africa refines only about 40% of its 4.3 million barrels daily consumption domestically. This stark contrast to Europe and Asia, which refine over 95% of their consumption, underscores a significant market opportunity lost to regions with surplus refining capacity.
Challenges and Solutions
Dangote highlighted the technical, commercial, and logistical hurdles faced in establishing the Dangote Petroleum Refinery, one of the most capital-intensive projects on the continent. He called for harmonized fuel standards across African nations and protective measures for domestic refiners to combat the influx of cheap, toxic petroleum products being dumped in African markets.
