Oil
OPEC estimates $125 billion needed for African refining by 2050
OPEC officials stated that Africa requires significant investment in refining capacity up to 2050 to meet rising domestic demand.
Key points
- Africa needs at least $125 billion for refining through 2050.
- Refining capacity is projected to expand to 7.9 million barrels per day.
- Opec highlights that demand will continue to outstrip continental supply.
Refining outlook
Africa will require an investment of at least $125 billion by 2050 for maintenance, current undertakings, and upcoming projects, according to Abderrezak Benyoucef, who heads the energy studies department at Opec. Speaking at the African Energy Week event in Cape Town, reported by African Energy Week, Benyoucef noted that current processing volumes stay below 3 million barrels daily, constrained by a utilization rate hovering near 55 percent.
Opec anticipates that distillation capacity will increase by 3.2 million barrels daily to reach approximately 7.9 million barrels per day by 2050. During the same timeframe, utilization is expected to improve to roughly 80 percent, aligning closer with international averages.
Demand and reserves
Despite projected expansions, continental refining output will trail behind fuel consumption. Opec forecasts that regional demand will climb significantly, while liquids output from producers outside the Declaration of Cooperation is anticipated to rise modestly over the coming decades.
Secretary General Haitham Al Ghais emphasized the continent's substantial resource base, noting holdings of proven crude and natural gas reserves. He cautioned that Africa must pursue economic development, energy security, and poverty reduction, pointing out that under reference projections, hundreds of millions of people across the region may still lack clean cooking access by mid-century.
Original reporting
This article draws on the following reports. Read them in full on the publishers’ sites.
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 2025Written 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.
