In a compelling presentation at the OTL Africa Energy Downstream Week 2024, Dr. Patrick Kwaku Ofori, CEO of the Ghana Chamber of Bulk Oil Distributors (CBOD), outlined key insights on Africa’s rapidly evolving energy landscape, emphasizing the opportunities and challenges ahead for the continent.
Dr. Ofori highlighted Africa’s projected population growth and industrial expansion as major drivers of increasing energy demand. He noted that Africa’s population, which is expected to reach 1.5 billion by 2025, will bring about greater energy consumption across sectors. Rapid urbanization and economic growth, particularly in Sub-Saharan Africa, are set to elevate demand for gasoline, diesel, and jet fuel, with projected increases of 2.4%, 2.9%, and 4.8% respectively in 2025.
Amidst this demand surge, he pointed to regional developments in refining capacity, notably the Dangote Refinery in Nigeria and Ghana’s Sentuo Oil Refinery, which together aim to reduce Africa’s dependence on imported refined products. However, he cautioned that Africa would remain a net importer due to limited refining capacity and logistical challenges.
He also addressed key challenges in the energy sector, such as international price volatility, currency fluctuations, and regulatory disparities. He stressed the need for greater regional cooperation, highlighting frameworks like the African Continental Free Trade Area (AfCFTA) as vital for fostering intra-African trade and economic integration.
Looking ahead, Dr. Ofori emphasized investment in renewable energy, natural gas, and infrastructure as critical for sustainable growth. He called for collaboration between governments and private investors to capitalize on Africa’s energy potential, positioning the continent as a key player in the global energy transition.
In his concluding remarks, he underscored the importance of policy reforms and technological advancement to address Africa’s energy needs, stating that strategic investment and cross-border cooperation are essential to achieving energy security and economic resilience.
