Oil
OPEC projects $125bn refining investment needed in Africa
OPEC estimates that Africa requires at least $125 billion in refining investments up to 2050 to meet surging fuel consumption.
Key points
- Africa needs $125 billion for new projects, facilities, and maintenance through 2050.
- Current refinery utilization sits at roughly 55%, processing under 3 million barrels per day.
- OPEC projects continental oil demand will climb to 9.2 million barrels per day by 2050.
Refining outlook
Africa will require a minimum of $125 billion in capital expenditure for oil refining infrastructure through 2050, according to projections shared by the Organization of the Petroleum Exporting Countries at African Energy Week in Cape Town. IndexBox and Social News XYZ reported that Abderrezak Benyoucef, head of OPEC's Energy Studies Department, presented the figures, which cover maintenance, existing plants, and new developments.
Benyoucef noted that regional refineries currently operate at a 55% utilization rate, handling fewer than 3 million barrels daily. Distillation capacity is expected to expand by 3.2 million barrels per day to reach roughly 7.9 million barrels daily by mid-century, with plant utilization improving to approximately 80%.
Demand and growth
Despite anticipated capacity gains, output will trail domestic requirements. OPEC forecasts that continental consumption will surge from 4.9 million barrels per day presently to 9.2 million barrels daily by 2050.
In a video message to attendees, OPEC Secretary General Haitham Al Ghais highlighted that the region's population is on track to expand by roughly 917 million inhabitants over the same timeframe. Economic output is projected to outpace other global regions with an average annual growth rate of 4.4%.
Al Ghais emphasized that the continent holds proven reserves of 120 billion barrels of crude oil and 18 trillion cubic metres of natural gas. He urged financial institutions to improve funding availability for energy infrastructure tailored to the specific circumstances of individual nations, stating that the region must not sacrifice economic development to combat a climate crisis it played a minimal role in generating.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
- IndexBoxOPEC: Africa Needs $125 Billion in Refining Investment Through 2050
- Social News XYZOPEC Puts Africa’s Refining Investment Need at $125 Billion Through 2050
- Oil & Gas Middle EastOPEC says Africa needs at least $125bn in refining investment through 2050
- Peoples Gazette NigeriaAfrica needs $125 billion refining investment from 2026 to 2050: OPEC
Context from CEII
Crude benchmarks move budgets, currencies and inflation in producer and importer countries alike. For economies such as Nigeria, where fuels dominate exports, production and refining decisions move the whole economy.
9.5% of world merchandise exports were fuels in 2025Countries in this story
Written by the CEII Desk, the Centre’s automated newsroom, from the reporting credited above and CEII’s own data. Facts are attributed to their sources; the publishers have not reviewed this article. Spotted an error? Tell our editors.
