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African Refining: A Promising Yet Unexploited Investment Opportunity (By Daniil Moskalev)

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5 months ago

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African Energy Chamber

By Daniil Moskalev, International Fellow, African Energy Chamber (https://EnergyChamber.org).

In recent years, the African continent has been characterized by the active commissioning of new refining capacities. However, despite this, there is a problem with the energy infrastructure on the continent, which leads to unavailability of refined products. This unavailability is both a blessing and a curse for the African continent, its people and its quest to make energy poverty history. While insufficient refining capacity creates serious challenges for domestic consumers and industry, it presents an attractive opportunity for foreign investors, many of whom have yet to fully grasp the continent’s unique advantages.

Africa: The World’s Breadbasket of Crude Oil

In 2026, the upward trend of hydrocarbon production is expected to remain positive, with the African Energy Chamber’s The State of African Energy 2026 Outlook showing that petroleum production will level at about 11.4 million barrels per day (MMboe/d), rising to about 13.6 MMboe/d by 2030. An increase in petroleum production should correspond with a rise in refining, however, ongoing capacity constraints continue to impact Africa’s refining market, leading to a reliance on imported petroleum. This impacts countries as they strive to build local industries, create jobs and develop technical expertise in the downstream sector.

Importing refined products costs African countries significantly more than processing crude oil at home, as imports involve added expenses such as shipping, insurance and other costs. With much of the continent’s refining infrastructure either obsolete or idle, there lies a critical investment opportunity for financiers and project developers.

Increased Population Mean Increased Consumption

With much of the continent’s refining infrastructure either obsolete or idle, there lies a critical investment opportunity for financiers and project developers

Beyond the current challenge of importing refined products, rapidly growing domestic demand must also be considered, as it could increase Africa’s dependence on external energy supplies. Although Africa is home to 18% of the global population, it consumes less than 5% of the world’s oil products. Sub-Saharan Africa, in particular, has the lowest per capita usage, underscoring the region’s significant potential for future demand growth ( according to information of our report). The expanding African market, driven by population growth and improving living standards, will provoke an increase in consumption. Anticipated demand growth offers strong prospects for new refining facilities. Investment in more advanced processing technologies can deliver higher returns for foreign investors while simultaneously meeting Africa’s urgent and growing demand for refined petroleum products.

Ongoing Challenges: The Case of Dangote

Market size and resource availability does not necessarily guarantee sufficient refining capacity. Take the Dangote oil refinery, for example. Even with its massive scale, this refinery will have only a limited effect on reducing Africa’s fast-rising import reliance. The continent will continue to face shortages of gasoline, diesel, and jet fuel over the forecast period. In the short-term, the capacity of Dangote refinery (617,000 bpd) could partially substitute foreign sources of refined products, but the prioritization of exports is more attractive for foreign investors, that’s why commissioning of new refinery plants does not address fuel accessibility challenges on the ground However, net imports for gasoline and gasoil will widen over the long-term against the backdrop of strong growth in demand and limited additions to refining capacity. Furthermore, the commissioning of the Dangote refinery is hugely significant for the Atlantic Basin’s oil trade due to export promotion, but it barely makes a dent in Africa’s growing requirement for imported refined products.

As stated in the African Energy Chamber’s Outlook 2026, gasoil net imports are projected to reach just under 1.8 million bpd by 2050, whereas gasoline net imports are forecast to exceed 1.5 million bpd. Relying on refined imports leaves countries vulnerable to global supply chain disruptions, shipping bottlenecks and sharp price swing risks that become even more severe during times of crisis. Therefore, the priority of developing domestic energy sovereignty should be to attract downstream investments to meet domestic demand.

So, we need to answer the questions: what can attract investors and what should we do? Foreign investments can be attracted if preferential financing conditions, a stable political environment, confidence in profitability and transparency of the terms of the agreements are provided. When these conditions are partially or fully met, large projects such as The Cabinda Oil Refinery or The Dangote Refinery are born..

What’s Next for African Refining

Given the scale of refining projects, mobilizing external financing is vital. There are several prerequisites to attract investment. Specifically, the availability of crude oil and access to a local domestic market. But countries need to look beyond this to strengthen regulatory frameworks; leverage public-private partnerships; simplify processes and reduce red tape; demonstrate openness to foreign investors; and be ready to meet companies’ half-way.

A Timely Opportunity for Strategic Investment

With political stabilization, the resolution of internal challenges and the establishment of a stable regulatory framework, the African refining market emerges as one of the most undervalued – and therefore potentially highly profitable – investment opportunity for global companies. An able workforce, a well-developed oil production system and growing demand are presented as outstanding incentives to attract investors to the continent. Strengthening the trust of external shareholders and investors can lead to an explosive development of the African oil refining industry. This can become one of the engines that drives African industrialization.

Distributed by APO Group on behalf of African Energy Chamber.

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As global power structures shift, Invest Africa convenes The Africa Debate 2026 to redefine partnership in a changing world

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2 days ago

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February 6, 2026

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Debate

The Africa Debate 2026 will provide a platform for this essential, era-defining discussion, convening leaders to explore how Africa and its partners can build more balanced, resilient and sustainable models of cooperation

LONDON, United Kingdom, February 5, 2026/APO Group/ –As African economies assert greater agency in a rapidly evolving global order, Invest Africa (www.InvestAfrica.com) is delighted to announce The Africa Debate 2026, its flagship investment forum, taking place at the historic Guildhall in London on 3 June 2026.

Now in its 12th year, The Africa Debate has established itself as London’s premier platform for African investment dialogue since launching in 2014, convening over 800 global decision-makers annually to shape the future of trade, finance, investment, and development across the continent.

Under the theme “Redefining Partnership: Navigating a World in Transition”, this year’s forum will focus on Africa’s response to global economic realignment with greater agency, ambition and economic sovereignty.

The Africa Debate puts Africa’s priorities at the centre of the conversation, moving beyond traditional narratives to focus on ownership, resilience and long-term value creation.

“Volatility is not new to Africa. What is changing is the opportunity to respond with greater agency and ambition,” says Invest Africa CEO Chantelé Carrington.

“This year’s edition of The Africa Debate asks how we strengthen economic sovereignty — from access to capital and investment to financial and industrial policy — so African economies can take greater ownership of their growth. Success will be defined by how effectively we turn disruption into leverage and partnership into shared value.”

The Africa Debate 2026 will provide a platform for this essential, era-defining discussion, convening leaders to explore how Africa and its partners can build more balanced, resilient and sustainable models of cooperation.

Key challenges driving the debate

Core focus areas for this year’s edition of The Africa Debate include:

This year’s edition of The Africa Debate asks how we strengthen economic sovereignty — from access to capital and investment to financial and industrial policy

Global Realignment & New Partnerships

How shifting geopolitical and economic power structures are reshaping Africa’s global partnerships, trade dynamics and investment landscape.

Financing Africa’s Future

The growing need to reform the global financial architecture, new approaches to development finance, as well as the strengthening of market access and financial resilience of African economies in a changing global system.

Strategic Value Chains

Moving beyond primary exports to build local value chains in critical minerals for the green economy. Also addressing Africa’s energy access gap and mobilising investment in renewable and transitional energy systems.

Digital Transformation & Technology

Unlocking growth in fintech, AI and digital infrastructure to drive productivity, inclusion, and the next phase of Africa’s economic transformation.

The Africa Debate 2026 offers a unique platform for high-level dialogue, deal-making, and strategic engagement. Attendees will gain actionable insights from leading policymakers, investors and business leaders shaping Africa’s economic future, while building strategic partnerships that define the continent’s next growth phase.

Registration is now open (http://apo-opa.co/46b19gj).

Distributed by APO Group on behalf of Invest Africa.

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Zion Adeoye terminated as Chief Executive Officer (CEO) of CLG due to serious personal and professional conduct violations

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2 days ago

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February 6, 2026

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CLG

After a thorough internal and external investigation, along with a disciplinary hearing chaired by Sbongiseni Dube, CLG (https://CLGglobal.com) has made the decision to terminate Zion Adeoye due to serious personal and professional conduct violations. This process adhered to the Code of Good Practice of the Labour Relations Act, ensuring fairness, transparency, and compliance with South African law.

Mr. Adeoye has been held accountable for several serious offenses, including:

  • Making malicious and defamatory statements against colleagues
  • Extortion
  • Intimidation
  • Fraud
  • Misuse of company funds
  • Theft and misappropriation of funds
  • Breach of fiduciary duty
  • Mismanagement

His actions are in direct contradiction to our firm’s core values. We do not approve of attorneys spending time in a Gentleman’s Club. CLG deeply regrets the impact this situation has had on our colleagues and continues to provide full support to those affected.

We want to express our gratitude to those who spoke up and to reassure everyone at the firm of our unwavering commitment to maintaining a respectful workplace. Misconduct of any kind is unacceptable and will be addressed decisively.

We recognize the seriousness of this matter and have referred it to the appropriate law enforcement, regulatory, and legal authorities in Nigeria, Mauritius, and South Africa. We kindly ask that the privacy of the third party involved be respected.

Distributed by APO Group on behalf of CLG.

 

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The International Islamic Trade Finance Corporation (ITFC) Strengthens Partnership with the Republic of Djibouti through US$35 Million Financing Facility

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2 days ago

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February 6, 2026

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ITFC

This facility forms part of the US$600 million, three-year Framework Agreement signed in May 2023 between ITFC and the Republic of Djibouti, reflecting the strong and growing partnership between both parties

JEDDAH, Saudi Arabia, February 5, 2026/APO Group/ –The International Islamic Trade Finance Corporation (ITFC) (https://www.ITFC-IDB.org), a member of the Islamic Development Bank (IsDB) Group, has signed a US$35 million sovereign financing facility with the Republic of Djibouti to support the development of the country’s bunkering services sector and strengthen its position as a strategic regional maritime and trade hub.

The facility was signed at the ITFC Headquarters in Jeddah by Eng. Adeeb Yousuf Al-Aama, Chief Executive Officer of ITFC, and H.E. Ilyas Moussa Dawaleh, Minister of Economy and Finance in charge of Industry of the Republic of Djibouti.

The financing facility is expected to contribute to Djibouti’s economic growth and revenue diversification by reinforcing the competitiveness and attractiveness of the Djibouti Port as a “one-stop port” offering comprehensive vessel-related services. With Red Sea Bunkering (RSB) as the Executing Agency, the facility will support the procurement of refined petroleum products, thus boosting RSB’s bunkering operations, enhancing revenue diversification, and consolidating Djibouti’s role as a key logistics and trading hub in the Horn of Africa and the wider region.

We look forward to deepening this partnership, creating new opportunities, and leveraging collaborative programs to advance key sectors and drive sustainable economic growth

Commenting on the signing, Eng. Adeeb Yousuf Al-Aama, CEO of ITFC, stated:

“This financing reflects ITFC’s continued commitment to supporting Djibouti’s strategic development priorities, particularly in strengthening energy security, port competitiveness, and trade facilitation. We are proud to deepen our partnership with the Republic of Djibouti and contribute to sustainable economic growth and regional integration.”

H.E. Ilyas Moussa Dawaleh, Minister of Economy and Finance in charge of Industry of the Republic of Djibouti, commented: “Today’s signing marks an important milestone in the development of Djibouti’s bunkering services and reflects our strong and valued partnership with ITFC, particularly in the oil and gas sector. This collaboration supports our ambition to position Djibouti as a regional hub for integrated maritime and logistics services. We look forward to deepening this partnership, creating new opportunities, and leveraging collaborative programs to advance key sectors and drive sustainable economic growth.”

This facility forms part of the US$600 million, three-year Framework Agreement signed in May 2023 between ITFC and the Republic of Djibouti, reflecting the strong and growing partnership between both parties.

Since its inception in 2008, ITFC and the Republic of Djibouti have maintained a strong partnership, with a total of US$1.8 billion approved primarily supporting the country’s energy sector and trade development objectives.

Distributed by APO Group on behalf of International Islamic Trade Finance Corporation (ITFC).

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