Ah, yes, Africa, the birthplace of our species and home to some of the most promising energy developments in the international market. Africa has seen its role in the global energy sector growing significantly over the past decade or so, with new refineries being planned and existing ones being upgraded and modernized to handle increased levels of output capacity. A new report notes that the continent is planning to expand its refining output by approximately 1.2 million barrels per day by 2030, paving the way for Africa to become a major player in the global oil and gas sector.
Africa has become one of the fastest-growing regions for oil refinery development
Africa has long languished in developing its refining output, but new developments have revealed the undeniable truth that the African oil market is set to reach new heights in the next few years as a litany of new developments reaches critical phases. The 2025 OPEC World Oil Outlook notes that Africa’s refining output is to drastically increase as new projects across several nations come online in the near future.
Africa’s role on the global stage is changing, as evidenced by the fact that South Africa became the first African nation to host the G20 Summit recently. Following reports that the Summit was a resounding success, it has become clear that the role that Africa will play in the international energy marketplace is shifting.
Africa is fostering an attractive investment opportunity for the global energy industry
Several African nations are leading the charge in the energy sector. Nigeria, Angola, and Uganda are all developing new refinery projects that will boost the region’s refining output over the next four or five years as the world turns to the African continent to increase energy output. A number of nations are fostering a welcoming and profitable environment for potential investors that will strengthen energy security in the region.
Several refinery projects in Africa have paved the way for significant investments
Leading the charge in Africa are Nigeria and Angola. The nation of Angola has been planning to complete the 100,000-bpd Soyo Refinery, as well as the 200,000-bpd Lobito Refinery, which will drastically shift the nation’s standing in the global energy marketplace from a net exporter to a nation capable of producing vast amounts of oil for domestic and international use.
While Angola’s plans are a step in the right direction, the undisputed king of the African oil sector is, without a doubt, Nigeria. The nation has plans to expand the Dangote Refinery to become one of, if not the largest, refineries in the world. Uganda also has plans to expand its refining capacity with the 60,000-bpd facility in Hoima, which forms part of the Lake Albert basin project.
Other projects worth mentioning are Algeria’s Hassi Messaoud Refinery, Libya’s Ubari project, and Egypt’s Soukhna Refinery. OPEC notes that the African sector will need upwards of $40 billion in refining investment by 2030 if it aims to meet its refining goals, and a further $60 billion after 2030 to continue the expansion of the African refining capacity.
New projects in Africa will require the cooperation of several nations
The substantial growth of the African refining sector will rely on the cooperation of several nations if Africa aims to become a major player in the international energy market over the coming years. Namibia and Botswana have launched a new joint feasibility study to evaluate the potential of a new cross-border refinery, exemplifying the region’s potential to drive the sector towards a new era of oil production led by the African continent. The global energy sector is in a constant state of evolution, and Africa has become the region with the most untapped potential for the oil market.
